Your retirement investment strategies
Strategies for a more rewarding retirement
The working life strategies below is an example for your reference and illustrative purposes only. You could follow or adapt these investment strategies according to your changing investment needs as you near retirement.
Time Scale | Investment Goal | Investment Strategy | Investor Profile | Asset Class |
|---|---|---|---|---|
Many years from retirement e.g. over 10 years | Build the highest capital growth potential in the longer term | Aggressive or growth | You are willing to take high levels of risk and short-term market fluctuation. | Equities |
Mid-way to retirement e.g. 6-10 years | Build capital growth above inflation and aim at less risky funds for steady income | Balanced or conservative | You wish to increase your long-term capital gain while pursuing a more stable income. | A balance of equities, bonds and short-term instruments |
When you are close to retirement e.g. 5-8 years or less | Protect your savings against any short-term falls in value just before you retire, and preserve your capital. | Conservative | You are risk-averse, you may wish to consider investing cautiously. | Money market funds |
Asset Allocation Strategies
Your asset allocation strategies can be adjusted accordingly as you approach retirement. For example, if there are 10 or more years to your retirement, you may consider allocating the majority of your assets to equities. Conversely, when there are only 8 years or less left before your retirement, you may consider allocating the majority of your assets to bond funds or money market funds to protect your retirement savings against any short-term falls in value.
Years to your retirement
Basic Asset Class | 15+ yrs | 15 yrs or below | 10 yrs or less | 6 yrs | 3 yrs or less |
|---|---|---|---|---|---|
Equities | 80-100% | 70% | 50% | 10% | 0% |
Bonds | 0-20% | 30% | 50% | 70% | 75% |
Cash | 0% | 0% | 0% | 20% | 20% |