Investing is one of the best ways to build your long-term wealth, but every person approaches it differently.

Although the approach you favour will largely depend on your own personal circumstances and goals, research shows that people of different ages tend to invest in different ways.

For example, many people who are approaching retirement will start to move their investments into less risky assets to protect their pension wealth just as they are about to start drawing from it.

Meanwhile, younger people who have a longer time frame for their investments to mature can often afford to take on more risk as they have more time to ride out market volatility.

This is not a concrete rule, though, and what suits you will depend on your own financial priorities.

Kate Marshall, head of fund research at Hargreaves Lansdown, said: “Portfolios often evolve gradually, with growth assets, income-producing investments and lower-risk holdings playing different roles at different points in life. The key is keeping that balance matched to your goals, time horizon and attitude to risk.”

How much do people have in investments at different ages?

As you get older, you are more likely to have a larger investment portfolio, according to data from HMRC obtained by through a freedom of information request.

This happens because most people earn more money as they get older. With higher earnings, you will have more disposable income available to put into your investment portfolio.

Additionally, your investments have more time to grow the longer you hold them meaning that, if the market has gone up, the original shares you bought will be worth more, as long as you resist the temptation to sell them.

The average market value of a stocks and shares ISA increases with age. Those aged under 25 have the lowest mean amount in their investment ISAs at £18,240, while the over 85s have the most, at £227,250.

How should you invest at different ages?

As you get older, the types of assets you invest in will likely change with your financial priorities.

Data from Hargreaves Lansdown found that their investors’ priorities change as they age, with younger investors favouring exchange-traded funds (ETFs) and tracker funds while older investors tend to prefer investment trusts, gilts, and cash ISAs.

Marshall said the data is “less about one investment being better than another and more about what people need from their money at the time.”

Around 70% of ETF and tracker fund holders on HL’s platform are under the age of 55, while only 6% and 7% respectively are aged over 75, suggesting they are far more popular among younger investors.

Marshall said: “For younger investors, the focus is often on long-term growth. When retirement is decades away, time is your biggest asset.

“Downturns are uncomfortable, but there’s time to recover from them, which is what makes growth-focused investments, like global equities, attractive. Simpler, lower-cost investments, like ETFs and tracker funds, can also provide an accessible way to gain exposure to a broad range of markets when starting out."

At the same time, the data shows that investors in their 30s, 40s, and 50s tend to buy more overseas shares, with investors aged 35 to 54 making up nearly half of their total owners, according to Hargreaves Lansdown.

Marshall said this could reflect “more established portfolios, a greater willingness to look beyond the UK, or due to perceived upside potential. International investing opens up access to companies and sectors the UK market simply doesn’t offer.”

Investment approaches tend to change again when retirement approaches as more people start paying attention to how their savings and investments will get them through retirement.

And as your time horizon decreases, Marshall said it is understandable to dial back on higher-risk assets like equities and instead introduce investments that provide more stable returns or provide an income alongside growth.

Hargreaves Lansdown’s data shows the age of the average gilt and cash ISA holder skews older, with 42% and 41% of holders being in the 55-74 bracket.

The age of the average investment trust holder skews older too, with 57% being 55 or over and 19% being 75 or over.

Marshall explained that this may be because “many investment trusts have established records of paying and growing income over time.

“Their closed-ended structure also gives managers more flexibility when investing for the long term. That can be compelling to anyone looking to balance growth, income and diversification as retirement approaches and throughout.”

However, this trend of taking on more risk while you are young and then moving onto safer assets when you are older is not prescriptive. Your investment decisions at any stage of life will be entirely dependent on your own personal circumstances and priorities.

“Portfolios often evolve gradually, with growth assets, income-producing investments and lower-risk holdings playing different roles at different points in life. The key is keeping that balance matched to your goals, time horizon and attitude to risk,” said Marshall.