Want to splash around in the gym? You could eventually live to a ripe old age, but in poverty

Spending money to stay fit and healthy is an increasing priority for many of us – but experts warn that the cost of staying fit could lead to an old age in poverty.

Research from asset manager Nutmeg shows that more than half of all people prioritize long-term physical fitness over ensuring they have enough money aside.

However, if you were to put the typical $200 per month you spend on fitness-related activities, such as gym memberships and nutritional supplements, into a pension, it could fund your retirement needs.

To enjoy a ‘moderate’ lifestyle in old age, you need an annual income of £31,300, according to the Pensions and Lifetime Savings Association. For a married couple this is £43,100.

The average lifespan for a man is 85 years and for a woman 88 years. To reach this level, an individual must put aside a minimum of £400,000 to purchase an annuity.

You give a company a fixed amount from your pension in exchange for an annual income until your death. The calculations assume that you also receive a full AOW pension.

But putting aside £200 a month for 40 years, with an average return of 6 per cent a year from investing in shares, will give you a total of £402,481, according to the Nutmeg compound interest calculator.

Claire Exley, head of financial advice at Nutmeg, says: ‘More and more of us are turning to healthier lifestyles to extend our lifespans, but this rarely applies to financial planning.

Adults are five times more likely to focus on increasing the longevity of their health than increasing the longevity of their wealth, but they need to prioritize their finances better.” She adds: ‘Inertia about retirement being too far away in the future is a key factor.

Smart planning and regular early savings can make a big difference to an affordable pension. A conversation with an advisor about lifestyle goals and the steps you can take to achieve them are all options you can consider.’

Nutmeg asked 2,015 people about their health and financial priorities. About 51 percent said they “prioritize physical longevity,” while 9 percent focus on “financial longevity.” It found that more than a third of us – 37 percent – ​​would advise our younger selves to consider both future wealth and health.

Around 42 per cent of respondents admitted they were not saving enough for old age – with one in five not knowing how much they were putting into a pension. One in twelve of us hopes that an inheritance will solve financial problems in old age, while another 8 percent hope for a lottery win.

Kate Reeve, 42, from Wimbledon in London, is among a growing number who are focusing on staying fit in old age rather than worrying about long-term financial security. After the death of her father at the age of 75 last year, she decided her priorities had to change.

The married mother of one says: ‘Being active is a big part of my life. I go to the gym four times a week and often try new diets. The gym membership alone costs £75 per month, while the cost of a personal trainer is a further £200 per month.’

The marketing company director added: ‘Although I like to take care of my body, I’m not in the best of shape financially. After seeing how smart my father was with budgeting and listening to his advice, I am now more conscious about wealth.”

Kate says she’s not ready to give up her gym or personal trainer just yet, but will cut back elsewhere so she can put aside as much as £1,000 a month into her company and private pension to reach her retirement goal. She adds: ‘My husband and I paid off our mortgage last year. Now I can focus on not only staying active as I get older, but also having the money to enjoy it.”

Asset manager Bowmore Asset Management has found that three quarters of all pension pots that matured last year were worth less than £50,000 – while just 5 per cent had assets worth more than £250,000. Most people have several pension pots at their disposal during their working lives, and they work in at least a dozen jobs.

Mark Incledon, CEO of Bowmore Asset Management, said: ‘The low value of most pension pots shows how savers are simply not putting enough money aside for a decent pension. One of the best ways to help yourself is to start saving for retirement early – even if it means sacrificing health drinks or gyms. By setting aside a sensible income from a young age with the help of a tax-efficient pension, you can benefit from long-term investments.’

The Pensions and Lifetime Savings Association (PLSA) has found that a ‘moderate’ pension is restrictive on the savings pot and for a ‘comfortable’ retirement, where you can enjoy the occasional weekend away, an individual needs £43,100 a year, while a married couple needs £59,000. .

To achieve this, the association has calculated that you as an individual must build up a total of more than €490,000, or as a couple €560,000 to be able to purchase an annuity. The money from the annuity is added to the state pension to get this total.

Mark Smith, head of saver engagement at the PLSA, says:

‘If we want to live longer and healthier, shouldn’t we also ensure that we can financially support our dreams of a good retirement?’