Freedom24 - Trading on stock exchanges

Cash., a German publication specialising in finance and trade news, has published an exclusive guest article by Dominik Mayr, Director of Freedom24 Germany. In his commentary, Dominik addresses a topic that concerns many: whether it still makes sense to start investing for retirement at 50 and beyond. Drawing on current research, he highlights that more than half of Germans expect their retirement savings to fall short, with 54% of people aged 50+ anticipating a pension gap of at least ten years. With Germany’s homeownership rate significantly below the EU average, many cannot rely on rental income or rent-free living later in life. For this reason, Dominik points to the stock market, particularly broad indices like the S&P 500, as a realistic alternative for long-term financial planning, even with a later entry. Historical data shows that consistent investing over 10–15 years can still build meaningful capital and help close individual pension gaps. In the second half of life, however, portfolio structure becomes especially important. Dominik outlines a clear approach: shifting part of the capital into more defensive investments five years before retirement, maintaining a liquidity buffer to avoid forced sales in weak markets, and balancing growth with stability through a mix of equities, dividend stocks, bonds, and real-asset exposure. This strategy supports sustainable withdrawals in line with the well-known 3–4% rule, a guideline suggesting that retirees can withdraw around 3–4% of their invested capital annually while keeping their assets sustainable for decades. His conclusion is both realistic and encouraging: while earlier market entry is always preferable, a late start can still pay off with discipline, thoughtful asset allocation, and a clear focus on financial security. With informed decisions, sound financial planning is possible at any point in life 🌱 Read more on Cash.