A widely cited shorthand for a principle the SEC’s own investor education confirms: most people hold less stock and more bonds and cash as retirement nears.
How it works
The “110 minus age” rule suggests that percentage of a portfolio in stocks, with the remainder in bonds and cash. It’s a starting point, not a personalized recommendation — it says nothing about individual risk tolerance, other assets, or time horizon beyond age alone.
What this does not include
The specific “110 minus age” formula is a popular personal-finance rule of thumb, not an SEC-defined figure — the underlying principle (more conservative allocation approaching retirement) is confirmed by Investor.gov, but the exact formula is not theirs, and this page says so rather than implying otherwise.
How to use this calculator
- Enter your age.
A worked example
At age 30, using the “110 minus age” rule of thumb: stock allocation = 80%, bond allocation = 20%.
At age 65: stock allocation = 45%, bond allocation = 55% — shifting toward more conservative holdings as retirement approaches.
What the variables mean
| Variable | Meaning |
|---|---|
| Age | Current age, used to estimate a starting-point allocation |
Edge cases worth knowing
This is a generic guideline, not personalized financial advice. Actual risk tolerance, time horizon, and other savings vary widely between individuals of the same age — this calculator gives a commonly cited starting point, not a prescription.
A missing age makes the recommendation impossible, so the calculator declines to show a result without one.
Frequently asked questions
Is this formula scientifically proven?
No — it’s a simple heuristic, not a personalized recommendation. Actual allocation should also weigh individual risk tolerance, other income sources, and specific retirement timing.
Why 110 instead of 100 minus age?
Older versions of the rule used 100; the 110 (and sometimes 120) variant reflects longer life expectancies and lower bond yields pushing some planners toward higher stock allocations at every age.
Should retirees hold zero stocks?
Not necessarily — many retirement plans still call for some stock exposure well past retirement age to keep pace with inflation over a potentially decades-long retirement.
