How much you should invest in the stock market if you’re a senior?

How much you should invest in the stock market if you’re a senior?

Financial experts often advise senior citizens to invest mainly in stock markets that could fund their life after retirement. Savings account and other cash investments offer low returns as compared to stock market. The stock market offers investors a golden opportunity to grow their cash holdings at a higher rate than the pace of inflation. However, the stock market is volatile and can take years or even decades to recover from the losses. So, sometimes seniors are forced to withdraw their savings when the stock prices get down significantly. It is a difficult task to make decisions on the amount you want to invest in the stock market and there is no strategy that works for everyone.

Increased longevity

As life expectancies have been increasing, senior citizens have been relying on stock markets to provide adequate income that can help them in the remaining years after retirement. It is advised to seniors to use the rule of 100 i.e., subtract your age from 100. This would give you an idea of how much you should invest for the remaining years. Don’t go aggressive as the losses may impact your future goals.

Search for an alternative investment plan

Stock market investment is uncertain whether it will benefit you or loss. Some experts prefer savings account and certificate of deposit over the stock market despite the low-interest rate due to this uncertainty.  So, it is advised to senior citizen to make large savings accounts before retirement. If your income sources after retirement provide you with enough fund to live an easy life then investing in the stock market is purely optional. It is good to avoid risk in later part of your life. If you want to earn extra income then keep aside a part of your cash that would help you in daily chores and invest the rest.

Delay retirement

It is advised to work longer to collect enough money for retirement. Working longer and saving more adds to the security of your retirement. If you have retired then you can look for part-time jobs. There are many platforms that provide jobs with a good pay scale.


The overall investment in stock markets depends on the income sources of the people and the present financial condition. If your income sources provide you with enough money to live comfortably then investing in the stock market is meaningless unless you want to take the risk for higher returns.