The New Rules of Investing at 70
By the time you turn 70, you're likely already retired and focused on enjoying your savings. But that doesn't mean every euro should sit idle in a savings account. While the fear of not having enough time to recover from market downturns is common, the numbers tell a different story: life expectancy at 70 often exceeds 15 years. That's enough of a horizon to continue allocating a portion of your capital to growth assets. The real question is what you want your money to achieve—will it fund daily needs, travel, healthcare, or a legacy?
The portion set aside for your safety cushion, routine expenses, or short-term plans should remain relatively secure and, crucially, easily accessible. 'From age 70, liquidity becomes as important as potential performance,' says Catherine Baudeneau, spokesperson for financial brokerage Altaprofits. Before chasing returns, you need to be able to get your cash quickly for unexpected health costs or help to a family member.
Once immediate and near-term liquidity are covered, the remaining money can still work on the financial markets—especially if it's destined for goals more than a decade away or for inheritance. This is where the tax treatment of assurance vie becomes a pivotal consideration. Before 70, premiums paid into a contract benefit from a €152,500 tax allowance per beneficiary on inheritance. After 70, that drops to a global allowance of just €30,500 across all beneficiaries, which makes many savers hesitate. Yet, Baudeneau notes, 'after 70, assurance vie keeps a real place in a transmission strategy because capital gains remain exempt from inheritance tax.' It remains a flexible wrapper for long-term growth and legacy planning.
Investors looking beyond insurance products have other age-appropriate options. SCPI funds (real estate investment trusts) allow continued property exposure without the management burden of direct ownership, potentially providing regular income. Meanwhile, selling a property en viager (a life tenancy sale) offers an immediate lump sum plus a monthly annuity, with fiscal advantages that improve with age.
What the Experts Say About Safety and Growth
Why Liquidity Reshapes the Investment Mix
Baudeneau's emphasis on liquidity isn't just about having cash on hand—it reflects the reality that many financial products, especially structured products with long maturities, only deliver their full benefits if held to term. An early exit can trigger penalties that eat into returns, making them unsuitable for money that might be needed unexpectedly. Savers should scrutinize early-exit conditions before committing funds, because the anticipated yield is irrelevant if the capital is locked away when it's most needed.
Assurance Vie After 70: A Tax Trade-Off
The sharp reduction in inheritance tax allowances after age 70 is the primary reason many investors stop feeding their contracts. But Baudeneau's point is nuanced: the tax hit applies only to new premiums, not to existing savings or future gains. For someone who has already built a substantial pot before 70, continuing to invest through the same contract can still make sense for the transmission of capital gains—provided the overall estate plan accounts for the new allowance. The contract also remains a useful tool for managing the timing of payouts and protecting beneficiaries from probate delays.
SCPI and Viager: Property Without the Hassle
Direct property ownership becomes more burdensome with age. SCPI funds offer a liquid route into real estate, with shares that can be sold more easily than a house and that generate dividends tied to rental income. Viager, while less common, solves two problems at once: it monetizes a home while allowing the seller to remain in it, and the annuity payments benefit from a tax regime that grows more favourable as the seller ages. Both strategies reflect a broader shift from accumulation to income generation and capital accessibility.
Practical Steps for a Secure and Growing Portfolio
Build a three-tier portfolio: immediate liquidity (savings accounts, money market funds) for the safety net; secure short-term assets (bond funds, fonds en euros) for money needed within 3–5 years; and longer-term growth investments for horizons beyond 10 years or for legacy goals.
Review your assurance vie contract's years: if you contributed heavily before 70, additional premiums face the lower €30,500 allowance. Calculate whether the tax impact on new contributions outweighs the benefit of keeping capital gains exempt from inheritance tax—or consider redirecting new money to other wrappers that better fit your transmission plan.
Check early-exit penalties: before choosing any product, verify the exact conditions and costs of early withdrawal. A product promising high yield is only valuable if you can access the money when a need arises.
Explore SCPI funds for property income: these vehicles let you keep real estate exposure without managing tenants or maintenance. They can generate quarterly or monthly income that helps cover living costs.
Consider a viager sale: if you own a property and need additional income, a viager can provide an immediate capital injection and a lifetime annuity while allowing you to stay in your home. The tax treatment of the annuity improves with age, making it particularly attractive after 70.
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