Walking not talking (004)
by Doug Brodie
/1. Lifestyling, how to lose ¼ of your pension
To invest over several decades with a finite end date when that sum will need to be withdrawn, the technique is usually to start off with equities and then as you approach the end of the term gradually sell down the equities and move the money into fixed income assets, swapping equity ups and downs for the reliability of fixed income streams.
Scottish Widows:
How does a lifestyle strategy work?
A lifestyle strategy is a type of investment that automatically adjusts how your pension is invested over time, gradually moving into lower risk funds as you get closer to your selected retirement age.
Where your money is invested
Your money will be typically invested in bonds and shares (known as 'equities'). These are shares within the UK, emerging markets and developed markets overseas.
Shares are considered riskier investments than bonds, so a portfolio investing in a large percentage of shares will carry more risk than one investing in a large percentage of bonds.
Vanguard promotes lifestyle funds, known as LifeStrategy. As you get closer to retirement more and more of your money is switched into bond funds automatically – but what happens when that’s the wrong thing to do? The charts below show Vanguard’s lower risk (!) LifeStrategy fund with 60% of the money in bond funds, just at the wrong time. The second chart shows a Scottish Widows bond fund at the same time. Losing 29% - here’s how our enquirer’s pension was smacked: wrong trade at the wrong time.
The reason for the collapse is this:
The basic maths that underpins fixed-income investing is widely known in investing circles, it’s Day 1 of investment school – a Lifestyle fund investment made during an ultra-low interest rate environment is sitting on a razor’s edge. Why did Vanguard and Scottish Widows not do something about it?
/2. The data comparing Vanguard FTSE Income vs Merchants Trust
Chancery Lane is independent, we are product and provider agnostic, our work is all bespoke for each client. We are financial planners and we are not shy about recommending clients keep their cash in the bank or similar accounts.
We run several £ million in Vanguard funds for cheap market exposure, we will use direct equities to complement fund holdings in the right client portfolios, we build buy-to-let properties into our lifetime cashflow plans.
We don’t use Vanguard funds for income, this is based on data, not opinion:
/3. The biggest threat to security as we age
We have a client / friend (Cam Tudor) who runs a physiotherapy business in central London; an expatriate Australian, we have a lot of conversations about sports, inevitably. When I busted a shoulder I had months of physio with Cam that swiftly evolved into a ‘boys’ competition, rather than simple therapy – the game was for him to see just how hard he could knead my shoulder joint without me capitulating. I’m pleased to say I normally won (but was he being polite?).
Your lifestyle in retirement is funded by your income, sure, but the actual lifestyle you live is directly impacted by mobility and fitness, so it must be at least equally as important to a great retirement.
Cam sees many folks of all ages, and a good number suffering from various issues caused primarily by age, and he has recently written a note with an explanation of part of what’s happening.
Why Strength Matters: The Key to Staying Independent as You Age
As we age, the desire to live life on our own terms becomes more important than ever. While financial security plays a role, the real key to maintaining freedom and quality of life lies in staying physically independent. Nobody yearns to be helped from a chair.
At West London Physio, our job is to help people navigate the challenges of ageing and manage the inevitable aches and pains that come with staying active. In this slightly longer newsletter, I'll outline what I see as the key cause of losing physical independence and why it's crucial to address it early.
What’s the Biggest Threat to Independence as We Age?
The number one reason older adults lose their independence is a decline in physical ability due to muscle loss, a condition known as sarcopenia. While ageing naturally brings changes to our bodies, the loss of muscle mass and strength is something we can slow down, and even reverse, with the right approach.
What Is Sarcopenia?
Sarcopenia is the gradual loss of muscle mass and strength, which typically starts in our 40s and accelerates after 60. This isn’t just a superficial change; it impacts your ability to perform everyday activities and increases the risk of falls, frailty, and chronic health issues.
On average, muscle loss happens at a rate of about 3–8% per decade after age 40, with the decline speeding up after 60. Factors such as inactivity, hormonal changes, chronic inflammation, and poor nutrition all play a role in this process.
The first step in fighting sarcopenia is recognising that it is certain to happen; the second is taking action. By focusing on building and maintaining muscle, you can greatly improve your health and quality of life as you age. But remember, if you want to stay active at 80, you need to start planning in your 40s, 50s, and 60s.
Why Do We Lose Muscle as We Age?
Muscle loss isn’t simply a result of ageing, it’s also driven by lifestyle factors.
Hormonal Changes: Growth hormone and sex hormone levels decline with age, making it harder to maintain and repair muscle tissue.
Reduced Physical Activity: Modern life often leads to more sedentary habits, and unused muscles weaken over time.
Poor Nutrition: Many older adults don’t consume enough protein or nutrients to support muscle health.
Two main changes occur in your muscles as you age:
Loss of Fast-Twitch Fibres: These fibres are responsible for quick bursts of strength and power, like getting up from a chair or climbing stairs. When we lose these fibres, even simple tasks become more challenging.
Decreased Muscle Protein Synthesis: The body’s ability to build and repair muscle declines, making it harder to maintain muscle mass.
Understanding these changes is crucial because they underline the importance of resistance training and protein intake. You need both to keep your muscles working efficiently.
The Metabolic Impact of Muscle Loss
Muscle is more than just strength and is essential for overall health. When we stumble, it’s our muscles that keep us from falling. When we go for a long walk it is our muscle's endurance, supported by cardiovascular fitness, that keeps us going. But, muscle also plays a vital role in metabolism.
The main metabolic consequences of muscle loss are:
Insulin Resistance: Muscle helps regulate blood sugar levels. Without sufficient muscle, the risk of insulin resistance and Type 2 diabetes rises.
Increased Body Fat: Less muscle means fewer calories burned, which leads to increased body fat.
Metabolic Syndrome: The combination of less muscle and more fat increases the risk of high blood pressure, high blood sugar, and elevated cholesterol levels.
Chronic Inflammation: Sarcopenia is often linked to low-grade inflammation, which worsens muscle loss and metabolic issues.
Can Older Adults Really Build Muscle?
There’s a common misconception that once you reach a certain age, it’s too late to build muscle. But that’s not true. Research shows that even individuals in their 60s, 70s, and beyond can significantly increase muscle mass through resistance training. While it may be harder due to anabolic resistance (the body’s reduced ability to respond to protein and exercise), with a good resistance program and diet, muscle growth is possible.
To maintain muscle strength throughout life, the goal is to create an environment where muscle protein synthesis outweighs muscle breakdown.
How Can You Prevent Muscle Loss?
Here are two key strategies to combat sarcopenia:
Adequate Protein Intake: Muscles need protein to grow and maintain their mass. Aim for 1.2-1.5 grams of protein per kilogram of body weight daily. For a 70 kg person, that’s about 85–100 grams of protein per day.
Regular Resistance Training: Resistance training is effective at any age. Muscles adapt when they’re challenged, but it requires regular effort. Gentle movements aren’t enough; you need to push your muscles beyond their current capacity. Afterward, your body will use the protein you've eaten to repair and grow stronger muscles.
Why Put in the Effort?
Building and maintaining muscle isn’t just about living longer; it’s about living better. Strength training helps bridge the gap between lifespan (how long we live) and healthspan (how long we live in good health). By keeping your muscles strong, you maintain your independence and quality of life.
Inactivity vs. Weight Training: Which Is Riskier?
Many older adults shy away from weight training, fearing injury. But inactivity poses a far bigger risk.
Inactivity Risks: Muscle loss, increased frailty, higher risk of metabolic disorders, cardiovascular disease, and decreased bone density.
Weight Training Risks: When done correctly and introduced gradually, resistance training carries minimal risk - beyond some expected aches and pains in the early stages - and offers immense benefits for maintaining health and strength
The bottom line is that while soreness after a good workout may be uncomfortable, inactivity is a far greater threat to your health and independence as you age.
If you have pain or injury stopping you from being active, or you need help designing the right exercise program, we're here to help. Online, by email, or on 02079371628
Keep moving,
Cameron