On 21 April 2024, nearly 50,000 people will take part in the London Marathon. For most participants, the race will represent the culmination of months of consistent hard work.
A typical marathon training program can last anywhere from 12 to 20 weeks. During this time, runners regularly run shorter distances two to four times and one “long run” each week, gradually building their distance over time.
Throughout these months of preparation, marathon runners keep their eyes on their goal – to cross the iconic finish line in front of Buckingham Palace.
On race day, to complete the marathon, runners will have to pace themselves and stick to their race strategy. They must avoid acting impulsively and pushing themselves too early due to the excitement and pressure of the event, running at a consistent pace to have the best chance of finishing.
The same is true when it comes to saving and investing. So, read on to discover four lessons the London Marathon could teach you about financial planning and building your retirement fund.
1. Focus on gradual progress
While training for a race, runners gradually build up their running distances over many months. As you previously read, while training, runners will typically complete several short runs a week, and one long run. They then increase the distance of this long run over time until they are close to hitting the full 26.2 miles.
If you were to try and run 26.2 miles in your first week of training, not only would you likely not be fit enough, but you’d be putting yourself at a high risk of sustaining an injury, which could scupper your dream of running the London Marathon entirely.
Early, short runs in your marathon training program are as important as later, long runs. They help to establish a base level of fitness and running ability that you can build on.
And it can be wise to think about saving for retirement in a similar way.
At the beginning of your career, when contributing to long-term savings like ISAs or pensions, you are unlikely to be able to deposit very large amounts into your savings. However, by saving just a little bit regularly you could build up substantial wealth over time.
As with incremental increases when training to run a marathon, as your career progresses, and your income rises, you can increase the amount you save.
The early, smaller contributions you make to savings can be just as important over time as later, larger contributions as they can benefit from many years of compound returns.
2. Be realistic about your performance
Though everyone would love to hit a sub-three-hour time on their first marathon, this is highly unlikely.
Rather than comparing yourself to other people you know who may be experienced marathon runners, it makes much more sense to set a race time goal based on your own abilities and experience.
We only need to look at some celebrities who have run the London Marathon to see the vast range of times that people achieve:
- Marcus Mumford – 03:51:25
- Chris Evans – 04:43:51
- Louise Minchin – 05:34:05
- Adele Roberts – 03:30:22.
None of these people are professional athletes, and all of them are of different ages, fitness levels, and running ability. Though clearly, some of the above times are faster than others, each celebrity listed completed the London Marathon, and were all successful in their own way.
The same is true when it comes to your financial plan. Due to factors such as income, inheritance, children and much more, the amount of wealth you can save for retirement will be personal to you. You can’t measure your success by comparing your retirement pot to someone else’s. Instead, you should think about your savings in terms of your personal circumstances.
Saving a regular amount of money that is comfortable for you could, in the long run, enable you to achieve your goals and live the retirement you want.
Working with a financial planner can help you to accurately forecast how much you will be able to save for retirement so that you can plan for key life events. They can use cashflow modelling to predict your retirement income based on your current and future income and savings.
3. Focus on the long term
Mo Farah, the most successful British long-distance runner of all time said: “It has been a long journey, but if you dream and have the ambition and want to work hard, then you can achieve.”
When training for and running a marathon, you have to focus on the long term. Long-distance running doesn’t deliver instant gratification. To stay motivated, you must focus on your long-term goal of crossing the finish line on race day.
When saving for your future the same is true. You may be tempted to react to global events such as elections or crises, but it is normally beneficial to stick to one long-term strategy throughout your life. Saving consistently could help to place you in the best position to have enough money to support yourself when you retire.
Read more: Are you contributing enough to your pension to fund your desired retirement?
4. Seek help from experts
In your running journey, you will almost certainly encounter problems. For example, you may have persistent knee pain that limits your ability to train.
In a situation like this, rather than pushing through and hoping for the best, it’s beneficial to speak to a professional physio.
Even professional runners don’t do everything themselves. As marathon runner Paula Radcliffe once said: “As an athlete, there are advantages being with a team”.
Having a team to help you on your retirement saving journey can be helpful too. A financial planner can use their expertise to devise a financial plan to help you reach your goals.
Like a knee injury when training for a marathon, if on your financial journey, you feel something is holding you back, speaking to a planner can give you the best chance of overcoming this challenge.
Get in touch
Whether you’re an avid runner, or you’ve never stepped foot on a treadmill, everyone can benefit from thinking about their retirement savings through the eyes of a marathon runner.
To find out how we can help you to effectively save for your future, email info@aspirafp.co.uk or call us on 0800 048 0150.
Risk warnings
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
The Financial Conduct Authority does not regulate cashflow planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.