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Retirement Planning and Investment Tips for Every Life Stage 
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Wealth BuildingBasics To InvestingInvestment StrategiesUnit Trusts & Mutual Funds
10 Mar 2025  I  6 mins read

Table of Contents

  1. Investing in the early years: 20s and 30s
  2. Investing in midlife: 40s and 50s
  3. Investing after 60: Retirement investment plans
  4. Investing tips for retired Malaysians

In a rush? Read the summary:

  • Investing approaches evolve and change through different life changes.
  • In the early years, investors may want to take advantage of riskier opportunities and stay invested for longer.
  • In later years, investor priorities may shift towards income generation and wealth preservation.

Investment approaches and strategies are shaped by many factors such as the investor’s age, experience level, life goals, and needs. Their investment needs may change as they go through different life transitions and changes.

Making the right asset allocation decisions at every stage helps investors combine growth with stability. Early career professionals may be risk-tolerant and ambitious, while people nearing retirement may adopt a protective approach. Let’s take a closer look at some age-specific strategies that can help investors prepare for retirement.

Investing in the early years: 20s and 30s

For most people, their 20s and 30s are marked by important life milestones. Kicking off a promising career, pursuing higher education, getting married and starting a family are common life changes during these years. Unsurprisingly, these transitions bring new responsibilities and financial considerations. Here’s how they may affect your investment style.

  • Risk: The early twenties are a period of freedom and experimentation for many investors. With fewer financial burdens, it’s a good time for younger adults to allocate a higher percentage to riskier assets.
  • Time horizon: Younger investors have the benefit of time on their side. They can afford to stay invested for longer and can maximise their odds of success in the market.

Tips for investing in your 20s and 30s

  • Focus on a diversified portfolio: Build a smart portfolio based on your risk appetite instead of focusing on short-term gains exclusively.
  • Look for lower investment thresholds: Low-cost options like unit trusts, index funds and ETFs can be a good place to start.
  • Educate yourself about investing: To make good investments, you need to understand market trends and investment products. These days, there are plenty of online resources to help you learn. You can also consider working with a financial advisor to help you kick off your investment journey.

Investing in midlife: 40s and 50s

Towards middle age, the investment landscape transforms considerably. The decades prior to retirement are characterised by higher earnings on one hand and increased financial responsibilities on the other. Investors at this stage are likely concerned with their kids’ education costs, medical expenses for parents, and their own retirement needs and planning. While retirement is on the horizon, investors still have the chance to complete their final sprint with a strategy that balances growth with wealth preservation. So, what are the key features of the investment approaches that people take in mid-life?

  • Stability: Many investors choose the stability and security of bonds at this stage. The returns could be lower, but they contribute to income generation which is another important consideration.
  • Income generation: Ahead of retirement, investors may pursue dividend-paying investments that can help create an income stream in the retirement years.

Tips for investing in your 40s and 50s

  • Maximise growth: Allocating a chunk of your portfolio to stocks can help maintain growth momentum. If your retirement contributions aren’t quite where you want them to be, prioritising growth can help.
  • Preserve capital: In the last decade before retirement, it can be a good idea to shift focus to bonds. This approach encourages capital preservation.
  • Pursue global diversification: This can be a great time to explore investment opportunities globally. You may be able to improve your potential for growth at minimal risk.

Investing after 60: Retirement investment plans

After years of working hard at a job or business, retirement can come as a big change. It marks a transition from a steady income to living off savings. Health and medical expenses can also be big considerations at this time of life, so much so that investors should prepare for the cost of long-term care.

Concerning aside, retirement is also a chance for many people to chase dreams they had neglected earlier, such as travel, hobbies, family time, or even a business idea. Key considerations for retirees include:

  • Wealth protection: Many retirees prefer the low risk associated with fixed income investments. They may be less focused on risk-heavy investments during this phase.
  • Sustained growth: Unexpected expenses can strike at any moment, plus retirees hoping for a second career or world travel may need funds to make their dreams come true.

Investing tips for retired Malaysians

  • Rebalance your portfolio: Take a look at your portfolio and work to balance it so it closely reflects your new needs and circumstances. Consider working with a financial advisor if you need help.
  • Consider selective risks: Retirees always face the danger of outliving their savings. This is why some risks are beneficial even after retirement. Some experts suggest investment-grade bonds or high-quality assets like blue-chip stocks to strengthen a portfolio.
  • Create strategies for withdrawal: Investors can explore withdrawal strategies like the fixed percentage strategy, the fixed dollar amount strategy or the income-only strategy, depending on the circumstances.

Your investment approach should change with every phase of life. Adapting to the specific needs that come with each decade can help you take advantage of promising opportunities in the present while building a strong foundation for the future.

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General Disclaimer

This article is for general information only and it does not constitute an offer, recommendation or solicitation of an offer to enter into any transaction or adopt any hedging, trading or investment strategy, in relation to any securities or other financial instruments. This article has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice or an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person or class of persons. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product or service described herein is suitable for you.

You are fully responsible for your investment decision, including whether the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount. Investment products are not deposits and are not obligations of, not guaranteed by, and not protected by the Bank or any of the affiliates or subsidiaries, or by Perbadanan Insurans Deposit Malaysia (“PIDM”), any government or insurance agency.

Standard Chartered Bank Malaysia Berhad & Standard Chartered Saadiq Berhad (the “Bank”) expressly disclaim any liability and responsibility for any loss arising directly or indirectly (including special, incidental or consequential loss or damage) arising from the financial losses of the investment products due to market condition.

For Takaful / Insurance Benefits

The benefit(s) payable under eligible certificate is protected by PIDM up to certain limits. Please refer to PIDM’s Takaful and Insurance Benefits Protection System (“TIPS”) Brochure for more information.

The information stated in this article is accurate as at the date of publication.

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