Target Allocation by Age (Tables)
Target Allocation by Age (Tables)
This article provides concrete allocation targets by age under different assumptions—100-minus-age, 110-minus-age, and 120-minus-age variants—along with guidance on which to use. Use these tables as a starting point; adjust for your income, time horizon, and risk tolerance.
Key takeaways
- Use 100-minus-age if you expect to retire at 65 and have moderate risk tolerance
- Use 110-minus-age if you expect to live 25+ years in retirement or have longer life expectancy
- Use 120-minus-age if you expect to live 30+ years or want to leave a legacy
- Allocations between ages shown can be interpolated linearly
- These are guidelines, not prescriptions; adjust for your personal situation
Conservative Allocations (100-Minus-Age)
This allocation assumes retirement at 65, moderate risk tolerance, and a life expectancy-matched portfolio.
| Age | Stocks | Bonds | Cash | Notes |
|---|---|---|---|---|
| 25 | 75% | 20% | 5% | Early career; high growth focus |
| 30 | 70% | 25% | 5% | Build wealth; accept volatility |
| 35 | 65% | 30% | 5% | Still 30 years to retirement |
| 40 | 60% | 35% | 5% | Transition to balance begins |
| 45 | 55% | 40% | 5% | Mid-career; growing stability |
| 50 | 50% | 45% | 5% | True 50/50; near peak earnings |
| 55 | 45% | 50% | 5% | De-risking accelerates |
| 60 | 40% | 55% | 5% | Retirement visible on horizon |
| 65 | 35% | 60% | 5% | Early retirement; conservative |
| 70 | 30% | 65% | 5% | Established retirement; safe |
| 75 | 25% | 70% | 5% | Advanced age; stability dominant |
| 80+ | 20% | 75% | 5% | Maximum stability; minimal growth |
Moderate Allocations (110-Minus-Age)
This allocation assumes retirement at 65–70, longer life expectancy (25–30 years), and moderate risk tolerance. This is closer to modern longevity and Fidelity's current recommendations.
| Age | Stocks | Bonds | Cash | Notes |
|---|---|---|---|---|
| 25 | 85% | 10% | 5% | Maximum growth; long horizon |
| 30 | 80% | 15% | 5% | Build wealth aggressively |
| 35 | 75% | 20% | 5% | 30 years to retirement |
| 40 | 70% | 25% | 5% | Still growth-oriented |
| 45 | 65% | 30% | 5% | Transition zone |
| 50 | 60% | 35% | 5% | Peak accumulation |
| 55 | 55% | 40% | 5% | Gradual de-risking |
| 60 | 50% | 45% | 5% | Balanced; flexibility high |
| 65 | 45% | 50% | 5% | Early retirement; moderate growth |
| 70 | 40% | 55% | 5% | Established retirement |
| 75 | 35% | 60% | 5% | Still meaningful equity exposure |
| 80+ | 30% | 65% | 5% | Longevity hedge |
Aggressive Allocations (120-Minus-Age)
This allocation assumes retirement at 65–70, very long life expectancy (30+ years), and either high income (so portfolio risk is secondary) or explicit intention to leave a legacy.
| Age | Stocks | Bonds | Cash | Notes |
|---|---|---|---|---|
| 25 | 95% | 0% | 5% | Pure equity growth |
| 30 | 90% | 5% | 5% | Extreme growth focus |
| 35 | 85% | 10% | 5% | Maximum wealth building |
| 40 | 80% | 15% | 5% | Strong equity tilt |
| 45 | 75% | 20% | 5% | Growth dominant |
| 50 | 70% | 25% | 5% | Equity-heavy balance |
| 55 | 65% | 30% | 5% | Still growth-focused |
| 60 | 60% | 35% | 5% | 60/40 core; strong growth |
| 65 | 55% | 40% | 5% | Early retirement; growth sustained |
| 70 | 50% | 45% | 5% | 50/50 baseline |
| 75 | 45% | 50% | 5% | Balanced in late age |
| 80+ | 40% | 55% | 5% | Meaningful equity legacy hedge |
How to Choose Your Variant
Use 100-minus-age if:
- You plan to retire at 65 or later
- You have moderate risk tolerance and sleep well with a 20–30% drawdown
- You have moderate life expectancy (family history suggests living into the 80s)
- You are not concerned about leaving a large legacy
- You prefer maximum simplicity
Use 110-minus-age if:
- You plan to retire at 65–70 and have a family history of longevity
- You are comfortable with a 25–35% drawdown
- You have moderate-to-strong income or Social Security backing the portfolio
- You want to maintain purchasing power across a 30-year retirement
- This is the default for many financial advisors today
Use 120-minus-age if:
- You plan to work until 70 or later
- You have a family history of very long life (parents living to 90+)
- You have strong income or other assets to fall back on
- You explicitly want to leave wealth to heirs or charity
- You are comfortable with 35–50% drawdowns (because you have time to recover)
Special Cases
Early career (age 25–35): Nearly all investors should use a high equity allocation, 75–95%, because of the time horizon. The variant matters less; use 100-minus-age for simplicity or 110/120-minus-age if you want more growth.
Mid-career (age 40–50): This is where the variants begin to matter. Someone following 100-minus-age at 45 holds 55/45, while 120-minus-age suggests 75/20. This is a 20-percentage-point difference in equities, which compounds significantly over 15–20 years.
Pre-retirement (age 55–65): De-risking accelerates. A 60-year-old on 100-minus-age holds 40/60 (conservative), while 120-minus-age suggests 60/35 (growth-focused). Your choice here shapes your retirement security.
Early retirement (age 65–75): This is where longevity assumptions matter most. A 70-year-old on 100-minus-age holds 30/65 (very conservative), while 120-minus-age suggests 50/45 (balanced growth). Over 20 years, the 120-minus-age approach likely generates 1–2% more annual returns, compounding to significant wealth differences.
Late retirement (age 80+): At this point, most investors care mainly about stability and enough growth to protect against inflation. A 85-year-old might hold anywhere from 15/80 (100-minus-age) to 40/55 (120-minus-age), depending on life expectancy and goals.
Adjustments Within Your Chosen Variant
Once you pick a variant, you can fine-tune based on individual factors:
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Stronger income: If you have a pension, strong salary, or other non-portfolio income, you can be 5–10 percentage points more aggressive (more stocks) because your portfolio is not your sole safety net.
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Longer life expectancy: If grandparents or parents lived to 95+, you probably should use the next-higher variant (110 instead of 100, or 120 instead of 110).
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Lower risk tolerance: If you have experienced anxiety during market declines or know you panic-sell, be 5–10 percentage points more conservative (more bonds).
-
Inheritance or large windfall expected: If you expect a significant inheritance or bonus, you can be more aggressive, knowing you have a safety cushion.
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Approaching a major expense: If you plan a big purchase (home, business, sabbatical) in 5–10 years, hold more bonds to avoid realizing losses if a crash hits near that date.
Rebalancing to Your Target
Once you've chosen a target allocation, rebalance annually or biannually to maintain it. If your stocks have grown from 60% to 70% due to market appreciation, trim back to 60% by selling stocks and buying bonds.
A simple calendar rule: Rebalance on January 1 each year (or your birthday, or any fixed date). Spend 20 minutes checking allocations and rebalancing if drift exceeds 5 percentage points.
Inflation Adjustments
These allocations are designed for nominal (not inflation-adjusted) returns. If inflation rises above historical norms, equities become even more valuable for their long-term growth. If inflation falls dramatically, bonds become relatively more valuable. The allocation framework remains sound across different inflation regimes.
Decision tree
Next
These tables provide a reference framework. But what if you want more structure? The next article presents three named archetypes—conservative, balanced, and aggressive portfolios—with specific fund recommendations and example mechanics.