There’s no shortage of opinions when it comes to saving for retirement.
But what do the top 1%, those who’ve actually built serious, sustainable wealth, really do?
Whether it’s your mate down the pub claiming to know exactly what the markets will do, or endless voices online shouting over each other about the latest investment trends, it can be hard to know who to trust.
But after 20 years of working with thousands of high-earning professionals and family leaders, one thing has become clear: the wealthiest don’t chase complicated schemes or secret investment hacks.
They follow a surprisingly straightforward approach that anyone can learn from.
Below I break down how the top 1% manage their money, where it goes, and what steps you can take to set yourself up for a retirement worth looking forward to.
The millionaire next door mindset
Take our client, Andrew*.
He’s 48, lives in Dubai, earns around $750,000 a year, and has a wife who runs her own consulting business.
They’ve got two kids studying abroad, and their finances are spread across a few countries.
Despite all this, they keep a low profile. Nothing flash, just smart decisions.
Together, they’ve built a net worth of just over $3.85 million, with a clear goal: stop working before 55.
Here's how their money is allocated:
- Primary residence: $1.6 million, fully owned.
- Investment property: $600,000, a London flat that brings in rental income.
- Pensions: Around $700,000 in UK-based pensions from previous roles, growing tax-efficiently.
- Stock market investments: $800,000 in globally diversified funds—nothing speculative.
- Cash: $150,000 kept aside for flexibility and emergencies.
This isn’t random - it’s purposeful.
Every slice of the pie plays a specific role: their home brings comfort, investments offer growth, the rental property generates income, and cash provides peace of mind.
By the way, I also published a YouTube video on this very topic, which you can watch here if you prefer:
If you haven’t already, consider putting together your own net worth snapshot.
Not just the total number, but where it all sits and why.
Knowing exactly what each asset is for helps cut through the noise and supports smarter decisions over time.
Simple portfolios, big results
Now let’s dive deeper into Andrew’s pension and investment approach.
You might expect a high earner like him to have a portfolio stuffed with exotic assets or cutting-edge fintech.
Not quite. Here’s the split:
- 80% global stocks (the great companies of the world, as I like to call them)
- 20% bonds
No hedge funds.
No crypto.
No chasing unicorn startups.
Just globally diversified index funds and solid bonds.
This kind of setup isn’t exciting, but it works.
It’s tax-efficient, low cost, and built for the long haul.
Bonds bring stability and help cover expenses during rough patches.
The stocks provide long-term growth.
Data shows this kind of disciplined, steady investing tends to outperform more complex (and expensive) strategies, especially once you factor in fees, taxes, and human error.
The wealthiest don’t want drama.
They want outcomes.
Specifically, they want to protect their future spending power and look after their family’s financial well-being.
So keep your strategy simple.
If you’re keen to dabble in something riskier - venture capital, maybe a few themed ETFs - that’s fine.
But treat those like seasoning, not the main course.
Cash, costs, and clarity
Even when it comes to banking, Andrew sticks to the same principles: keep it smart, and keep it simple.
He does have a private bank account, but not for the prestige.
He chose it after carefully checking what he’d get, what it would cost, and what value it would bring.
Outside of that?
No clutter.
He’s not bouncing between ten banking apps or hoarding loyalty points.
Instead, he holds around six months' worth of expenses in cash.
Half of that sits in high-interest savings, the rest in low-cost money market funds.
Boring? Yes.
Effective? Absolutely.
The truly wealthy aren’t dazzled by shiny financial products.
They’ve learned that hidden charges and flashy offers often do more harm than good.
At this level, preserving wealth matters just as much as growing it.
So make sure you know what you're paying in fees.
Keep your setup lean. Forget the gimmicks and focus on efficiency.
Why this strategy works
You might wonder why wealthy people choose this approach, especially when they could probably take any route they like.
Here’s why: it works.
They know wealth is built through companies and bricks: in other words, stocks and property.
They optimise their decisions over time, fine-tuning things like costs, tax strategies, and borrowing structure.
They also think beyond investing, factoring in family well-being, estate planning, wills, insurance, and risk management.
In fact, smart investing is just one of the nine key areas that make up strong financial planning.
The rest? Often overlooked, but just as important.
And when it comes to investing, they follow the evidence.
No hype. No guesswork. No secret formulas.
Just decades of peer-reviewed data guiding their actions.
It’s slow. It’s methodical. It’s dull.
But it’s repeatable - and that’s the whole point.
Most people won’t win the lottery or strike gold overnight.
But most can build real, meaningful wealth with consistency and a plan.
That’s the real secret behind how the top 1% retire well.
The takeaway
So, what can you take from all this?
- Get clear on your net worth - and the purpose behind each asset.
- Build your retirement plan on globally diversified, low-cost investments.
- Keep your financial life simple, efficient, and transparent.
- Avoid hype, and focus on long-term outcomes.
- And most importantly, embrace boring. Because when it comes to funding the kind of retirement you’ll actually enjoy, boring is what gets results.
Understanding how the top 1% save for retirement is the first step.
Putting it into action is what makes the difference.
Want to know more about the rules these high-net-worth individuals actually follow?
Follow me on YouTube where I post a new video every Friday.
