We’re all aware of the need for physical exercise and we “know” that walking 10,000 steps a day is a good place to start. You might even have a pedometer that tracks your movement and sends you notifications as your daily target nears.
But there’s more to physical wellbeing than a five-mile walk each day (depending on your stride length).
While tracking your steps is easy, real change will likely require varied exercise combined with a balanced diet and other healthy lifestyle choices, which can be harder to track and maintain.
The same basic principles are true of your pension. Keeping on top of contributions and pot values is the easy part – the equivalent of your 10,000 steps. But there’s significant work that goes on behind the scenes to maintain the balanced diet and healthy lifestyle of the rest of your plan. That’s where Jane Smith Financial Planning comes in.
Keep reading for a look at why focusing on your end goal, and what your pension will help you achieve, is key to successful long-term planning. Plus, find out more about the behind-the-scenes work that we do to help you get there.
Brits prioritise physical and mental health over financial wellbeing but all three are connected
Money Marketing confirms that UK adults are twice as likely to track their steps (37%) as their investments and pensions (18%). Just under half (44%) are striving to hit their 10,000 steps a day, with 51% admitting to prioritising physical health and longevity over financial stability and security (9%).
Of course, your physical health is vitally important and it feeds into your emotional wellness too. But it’s important not to underestimate the role of your financial wellbeing in your overall health.
The survey found that just 44% believed that having a pension or savings was as important for a long and fulfilling life as a gym membership. But a long-term financial plan can provide peace of mind, confidence, and a sense of control in later life, possibly long after your gym membership has expired.
Expert financial advice can help you track your way to a dream retirement
Your retirement journey is long and complex. Keeping track of your contributions and pension pot values, and then carefully managing withdrawals throughout a decades-long retirement isn’t easy.
Here are some other areas where advice could help:
1. Managing the Annual Allowance
The Annual Allowance is the total amount you can contribute tax-efficiently into your pension during a tax year; it includes personal and employer contributions, as well as tax relief.
In 2025/26, it stands at £60,000 (or 100% of your earnings, if lower).
Exceeding the allowance can result in a tax charge so tracking your contribution history is vital.
2. Factoring in the Money Purchase Annual Allowance and pensions taper
Your Annual Allowance may be lower if you have already flexibly accessed your pension or your income exceeds certain thresholds. The Money Purchase Annual Allowance (MPAA) is triggered if you flexibly access a pension pot and it limits your Annual Allowance to just £10,000.
The Tapered Annual Allowance kicks in if your adjusted annual income exceeds £260,000 and could see your allowance drop to just £10,000, severely limiting the tax-efficient contributions you can make.
3. Balancing and reviewing your asset allocation
Your investment portfolio is carefully balanced to align with your attitude to risk and long-term goals. But life events can change your priorities, your goals, and your risk profile. And global events can cause stock market movements that throw your portfolio out of balance.
Your asset allocation might need revisiting to keep it aligned with your goals and we’re behind the scenes, watching for this eventuality at all times.
Your portfolio is diversified to spread risk, but regular reviews are also a vital part of what we do for you.
4. Emergency tax and the timing of withdrawals
Global events lead to market uncertainty and it’s easy to panic while doomscrolling negative headlines. But staying calm and focused on your goals is key.
If you want to withdraw a large portion of your fund for any reason, speak to us first. You might be diligently tracking your pension but there could be hidden tax traps or unknown consequences you need to factor in.
A large withdrawal could see you pay emergency tax, for example, while poorly timed withdrawals could push you into a higher tax bracket.
Your plan is robust so if you want to make an unplanned withdrawal we can factor it in while helping you to understand the adjustments that might be necessary.
5. Factoring in later-life care
UK life expectancies are generally increasing, but this could mean we spend more years in ill health. So, budgeting for later-life care, and factoring this into your long-term plans from the outset, is increasingly important.
You might have a firm grasp on your pension values and the cost of your retirement, but unexpected costs can still arise.
We can help you budget for the unexpected while also factoring in tax-efficient contingencies so that you’ll be confident the money will be used effectively if care isn’t needed. You might not want to dwell on the possibility of your own later-life care needs but you can rest assured that we already have.
Get in touch
Keeping track of your steps and your pension is a great starting point to achieving your goals but there’s more hard work to do besides.
If you’re looking for an independent financial adviser in Milton Keynes or Olney to help you reach your dream retirement then look no further. At Jane Smith Financial Planning, we’ve been helping clients for 30 years, so contact us at info@janesmithfinancial.com or call 01234 713131 to see what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
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