📅 Last updated: 8 May 2026
· 🏷 Topic: Asset allocation, age, glide path
· 🇧🇪 For: Belgian investors at every life stage
How do you split your portfolio between equities, bonds, real estate and cash as you grow older? The concept is called the glide path: a progressive shift from growth (equities) to protection (bonds) as your horizon shortens.
The classic rule of thumb: “100 – age”
A simplified formula: percentage in equities = 100 – your age.
| Age | Equities | Bonds |
|---|---|---|
| 25 | 75% | 25% |
| 35 | 65% | 35% |
| 45 | 55% | 45% |
| 55 | 45% | 55% |
| 65 | 35% | 65% |
This was the conventional wisdom for a long time. Today it is too conservative for most people — modern recommendations shift toward “110 – age” or even “120 – age” because of longer life expectancy and lower bond yields.
More modern recommendation: “110 – age”
| Age | Equities | Bonds |
|---|---|---|
| 25 | 85% | 15% |
| 35 | 75% | 25% |
| 45 | 65% | 35% |
| 55 | 55% | 45% |
| 65 | 45% | 55% |
For anyone with 30+ years until retirement, this is historically a better balance.
Concrete by age
25-year-old (horizon 40 years to retirement):
- 80-90% equities (world index ETF)
- 10-15% bonds (defensive counterweight)
- 5% cash (emergency fund outside the portfolio)
- Optional: 1-3% crypto as a satellite
- Goal: maximum compounding effect, tolerate volatility.
35-year-old (horizon 30 years):
- 70-80% equities
- 20-25% bonds
- 5% cash
- Goal: still plenty of growth, but starting to add a defensive counterweight.
45-year-old (horizon 20 years):
- 60-70% equities
- 25-35% bonds (possibly start with real estate via REIT/GVV)
- 5% cash
- Goal: balance between growth and protection.
55-year-old (horizon 10 years):
- 50-60% equities
- 30-40% bonds (shorter durations)
- 5-10% cash
- Goal: glide path toward retirement, smaller drawdowns.
65-year-old (retirement, horizon 15-25 years):
- 30-50% equities (to beat inflation over a lifetime)
- 40-60% bonds (short + medium term)
- 5-15% cash + reserves
- Goal: preservation of purchasing power + predictable income.
Why do equities remain important in retirement?
A common mistake: putting everything in bonds at retirement age. The problem: a healthy 65-year-old may have 20-25 years ahead of them. Over that period, inflation can halve purchasing power if capital sits in low-yield bonds.
30-50% equities at retirement is wiser than 0% for most healthy 65-year-olds. It protects against longevity risk (living too long with too little money).
The “bucket” strategy
A popular alternative approach for retirement age:
- Bucket 1 (1-2 years of expenses): cash + short-term bonds. For immediate spending, no volatility.
- Bucket 2 (3-7 years of expenses): medium-term bonds + dividend equities. Stable cash flow.
- Bucket 3 (7+ years of expenses): world equity ETF. Growth for long-term inflation protection.
When Bucket 1 runs down, you refill it from Bucket 2; Bucket 2 is replenished from Bucket 3 (in good market years).
Personal adjustments
Rules of thumb are rules of thumb. Reasons to deviate:
- You already own a home + EIP + branch 21: you already have a lot of “bond-like” exposure. The equity portion can be more aggressive.
- You have unstable income (self-employed, freelancer): more defensive, since your portfolio is your back-up.
- Inheritance expected: can be more aggressive because an external source of wealth is planned.
- High risk tolerance: can stay 100% equities until retirement — historically better, provided it is emotionally sustainable.
- Low risk tolerance: possibly more in defensive assets — accept a lower expected return.
See Determining your risk profile(NL) for the psychological side.
Belgian context
For Belgian investors there are extra points to consider:
- Pillar 1 (statutory pension): for most employees ~50-60% of last salary. For the self-employed often much lower.
- Pillar 2 (EIP/group insurance): supplementary, often in branch 21 or branch 23.
- Pillar 3 (pension savings): supplementary.
- Pillar 4 (private investment): the work that this article describes.
Calculate your net pension income from all four pillars and check whether it matches your expected expenses. The difference = what pillar 4 has to deliver.
🔗 For portfolio construction with concrete ETF choices: see Portfolio construction and IWDA vs VWCE(NL).
2026 Belgian capital gains tax
Since 1 January 2026, Belgium applies a 10% capital gains tax on realised gains from shares, ETFs, bonds and crypto, with the first €10,000 of net gains per year exempt. This affects the glide-path discussion only at sale: rebalancing late in life that crystallises large equity gains may now trigger CGT above the threshold. Plan rebalancing in stages to stay within the annual exemption where possible.
Sources
- Wikifin — Investing by age
- Federal Pensions Service — Statutory pension overview
- Vanguard / BlackRock — Glide path research
Read also: compound interest and why starting early matters
Sector & Themed ETFs for Belgian Investors
Sector and themed ETFs for Belgian investors: how to use them as a small satellite, the diversification trap, and Reynders-tax considerations.
Keytrade Review for Belgian Investors
Keytrade Bank review: ETF list, transaction costs, integration with Belgian banking, and where it fits in the Belgian broker landscape.
Your First Stock Purchase in Belgium — Step by Step
Buying your first stock as a Belgian investor: choosing a broker, opening an account, understanding TOB, and avoiding the most common rookie mistakes.
