Retirement Retirement investing: How should your approach change as you get older?

Imagine a market downturn tomorrow.

If you're 35 and retirement is still 30 years away, you might view it as a temporary setback.

If you're 60 and planning to retire in five years, you may feel very differently.

The same market event can have very different implications depending on where you are in your retirement journey.

Yet while many people review their insurance needs, housing plans or financial goals as they move through life, far fewer regularly review whether their retirement investments still match their circumstances.

After all, a portfolio that suits someone with 30 years until retirement may not be the same one that suits someone with five years until retirement.

So what does that change actually look like in practice?

What actually changes over time?

Earlier in life, many people invest with the aim of growing their retirement savings over the long term.

These questions reflect a gradual shift in priorities.

When retirement is still decades away, the focus is often on growing retirement savings and giving them time to compound.

As investors move through different life stages, that focus may broaden to include protecting the savings they have already accumulated and preparing them to support future income needs.

As a result, many investors gradually move towards a more balanced approach that combines growth, stability and income.

Keeping your portfolio aligned over time

Even if retirement investing should evolve over time, knowing exactly how to make those changes can be difficult.

For many people, retirement investing isn't a decision they revisit regularly.

Once a portfolio is set up, it can be easy to leave it unchanged for years as work, family and other priorities take centre stage. Others may only revisit their investments after a significant market event.

Most investors aren't professional portfolio managers. Even if they know their investments may need to change over time, knowing when and how to make those adjustments can be difficult.

A simpler approach: Target date funds

Target date funds are designed to help address this challenge.

A target date fund is built around an expected retirement year. Rather than requiring investors to decide when and how their portfolio should evolve, the fund automatically adjusts over time.

When retirement is still many years away, the portfolio typically places greater emphasis on growth-oriented investments, helping investors build retirement assets over the long term.

Over time, the fund gradually shifts towards a more balanced mix that may place greater emphasis on stability and income generation.

This gradual adjustment is often referred to as a glide path.

The idea is simple: as your retirement needs change, your portfolio evolves alongside them.

Early in the journey, retirement investing is often about growing assets. In later years, it increasingly becomes about preparing those assets to support future retirement income while managing the impact of large market swings.

Importantly, these adjustments happen automatically.

For investors who prefer a more hands-off approach, this can simplify the process of staying invested and staying aligned with long-term retirement goals.

Is your portfolio still aligned?

Many people review their housing plans, insurance coverage and financial goals as circumstances change.

Your retirement investments deserve the same attention.

Retirement investing is a journey

The investment approach that helps you build retirement savings in your 30s may not be the same approach that helps you feel confident about retirement in your 60s.

Over time, the focus often expands beyond growing assets. It becomes about preparing those assets to support the lifestyle, income and choices you hope to enjoy in the years ahead.

For some investors, that may mean reviewing and adjusting their portfolio over time. For others, a target date fund may provide a simpler way to stay aligned with their goals.

Because retirement investing isn't simply about growing wealth.

It's about ensuring the savings you've spent years building continue supporting the retirement you're working towards, whether it's 30 years away or just around the corner.