Planning for retirement isn’t one-size-fits-all. In 2025, the best investment options depend heavily on your age, income level, and risk tolerance. A 25-year-old should invest very differently from a 55-year-old. Let’s break it down by age group:

In your 20s and 30s:
This is the accumulation phase. You have time on your side, so a higher-risk, higher-return portfolio makes sense. Focus on stocks and equity ETFs, with small allocations to REITs or crypto if desired. Consider investing in growth companies, tech sectors, and index funds. Max out your retirement accounts like RRSPs (Canada) or IRAs/401(k) (U.S.).

In your 40s:
This is the growth and balance phase. You’re likely earning more and can contribute more. At the same time, consider diversifying into bonds, real estate, and dividend-paying stocks. Continue to prioritize tax-efficient investing and start setting more specific retirement goals.

In your 50s:
Now it’s time to reduce volatility. Gradually shift some assets to lower-risk instruments like bonds, TIPS, and conservative mutual funds. Focus on income generation while maintaining some growth exposure. This is also a good time to meet with a financial advisor to fine-tune your plan.

In your 60s and beyond:
Capital preservation becomes key. Most of your portfolio should now generate stable income, through annuities, dividend stocks, real estate income, and bond ladders. Avoid risky assets unless you have a strong financial buffer.

Retirement investing is a marathon. The earlier you begin—and the more you adjust as you age—the smoother the transition to financial independence will be.