Article written by Jason Choy, InvestNow, Senior Portfolio Manager – January 2026

A lot of the conversation around investing focuses on building up a sufficient nest egg for retirement. But what about when you’re already there? What about when you’re within touching distance?  

It’s one of the least discussed parts of investing, yet arguably one of the most important.  

Just because you’re a certain age, it doesn’t necessarily mean you need to do a 180 on your investment approach. 

But how should you navigate your investing strategy as you approach a new stage in your life?  

Risk in retirement

The general consensus is the older you get, the fewer risks you can afford to take in investing. This reflects the shorter your investment timeframe is, the less time you have to recover from a market dip.   

While it makes sense for investors to adopt a more conservative investment approach over time, for many investors, this transition should be a gradual shift rather than a step-change once they reach retirement age.  

This is because your retirement years can stretch 20, 30 years or more, which is more than enough time to ride out periods of market variability.  

Yes, it’s prudent to de-risk your portfolio, but by no means do you have to become entirely conservative once you get access to your SuperGold card. In fact, moving all your investments into “safe” options like cash can actually create a risk that your money gets outpaced by inflation and no longer be enough to support your later years.  

Keeping some growth exposure is important to ensure your nest egg stretches as far as it can. 

The trick is balance. You don’t need to take the same risks you did in your 30s or 40s, but you also don’t need to swing too far the other way either, particularly as you’re just entering your golden years. 

Adjusting your risk profile 

So how might you transition your traditional approach to one more suited to your current stage of life? 

One way is to look to match your portfolio to your retirement needs. 

Short-term needs (0-5 years): This is money you expect to spend soon; on travel, home upgrades, living costs etc. It makes sense to keep this portion in cash or conservative investments where the value won’t swing too much, so you know how much you’ve got. 

Medium-term needs (5-10 years): Money you’ll need a bit further down the track could be kept in balanced funds, with a mix of growth and income assets. 

Long-term needs (10+ years): Even in your 70s or 80s, you might need money a decade or more into the future. This is where growth investments can still play a role, giving your savings the chance to grow faster than inflation. 

This kind of “bucket” approach can provide peace of mind. You know the money you need soon is secure, while the money for later can continue compounding. 

How much risk is right?

Only you can answer this question.  

Everyone’s circumstances differ. There are many factors to consider, including how much you’ve saved, whether you own your home, how much you expect to spend and whether you want to leave an inheritance. 

Things to consider: 

• Risk vs growth: If you completely avoid risk, you’ll miss growth opportunities that ultimately enable your portfolio to finance your lifestyle for longer. Even a modest allocation towards growth assets (say 30-40% of your portfolio) can make a big difference to the long-term sustainability of your nest egg. 
• Time vs age: Your age matters less than when you’ll need the money. A 70-year-old who wants to preserve wealth for their 100th birthday has a very different investment horizon (and therefore investment approach) compared to someone who plans to spend most of their savings in the next 10 years. 
• Flexibility: Retirement life can be unpredictable. You may want to spend more in your 60s while you’re active, and less later on. Build a portfolio that allows for these changes without locking yourself in. 

Approaching retirement 

When you’re nearing retirement, it can be a good opportunity to start transitioning towards the kind of investment strategy you’ll have in retirement.  

A gradual transition will reflect the stage of life you’re in, without abandoning the approach you had up until now. 

It also helps to maintain engagement with your portfolio because it’s familiar to you.  

Perhaps most importantly, it gives you time to adapt to how your portfolio might perform when you do retire, and what you could expect in terms of cash flow. Think of it as retirement-lite.  

Implementing this transition is actually no different to conducting an annual portfolio health check, which helps ensure your investments continue to be structured optimally according to your life stage and goals.  

If you’ve been diligent enough to check in with your portfolio every year, you’ll know what to do. If you haven’t, (and plenty of people don’t, even if it is recommended) you can start here. 

Other factors

Risk allocation is likely the main factor to consider as you approach retirement age, but there are other areas worth thinking about too. 

• Income generation: Some retirees prefer investments that pay regular income, such as dividends or bond interest, so they don’t have to sell assets to fund their lifestyle. If you prefer the stability of regular income, then a dividend or fixed interest orientated investment strategy could be suitable.

• Diversification: Being diversified across different investment assets, sectors and countries is always recommended, including in retirement. Diversification is the best way to spread risk, as disaster striking any one investment won’t materially harm your overall portfolio.

Ideally, you’ll have been well diversified before now, so this shouldn’t require much of a change, if any.

• Tax efficiency: The way you structure withdrawals can affect how much tax you pay, and therefore how much you actually get to spend enjoying your retirement years. Tax is always get complicated, so professional advice can be useful here.

• Review regularly: This is another factor that ideally, you’ll be doing already and at least once a year.

Even within retirement, your circumstances can change, so it’s important to continue to check that your portfolio is optimised to your current needs.

The bottom line

Whether you’re approaching retirement or you’re in it, a well-balanced portfolio gives you the best of both worlds: stability for today and growth for tomorrow. 

At InvestNow, we understand that no two retirements look the same. That’s why we offer access to a wide range of funds, from conservative to growth-oriented, and the flexibility to build a portfolio that reflects your stage of life. 

Because retirement isn’t the end of your investing journey – it’s just another chapter. 

Disclaimer:

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