No savings at 50? I'd buy ASX 200 shares and aim to retire rich

If you've reached 50 with little or no savings, retirement might seem like a scary prospect.

But don't panic—there's still time to build wealth and secure a comfortable future.

In fact, the vast majority of Warren Buffett's wealth was generated after he turned 50. So, clearly it is never too late to start working on that nest egg.

Retiring rich

The key to retiring rich even if you have no savings at 50 is to invest in high-quality ASX 200 shares. Particularly those that offer strong growth potential and, in some cases, reliable income streams.

While there are no guarantees in investing, history shows that the Australian share market has delivered an average return of around 10% per annum over the long term.

If you consistently invest $1,000 per month into top-performing stocks, your portfolio could grow to over $400,000 by age 65 if you generated this level of return.

Increase that monthly investment to $2,000 and you could be looking at an $800,000 portfolio by the time you hit 65.

Investing in ASX 200 shares

ASX 200 shares represent some of the best businesses in Australia and beyond, many with global operations and strong long-term growth prospects.

Investing in innovative, industry-leading companies can help you benefit from capital growth, increasing earnings, and compounding returns—essential ingredients for a strong retirement portfolio.

Three ASX 200 shares that could help you on your road to becoming rich are as follows:

ResMed Inc. (ASX: RMD)

ResMed is a global leader in sleep apnea treatment and respiratory care. With growing awareness of sleep disorders and an ageing population, demand for its products is set to rise. Analysts expect double-digit earnings growth through to FY 2027, making ResMed an attractive long-term investment.

Last month, Morgans put an add rating and $43.60 price target on ResMed's shares.

Xero Limited (ASX: XRO)

Xero is a cloud-based accounting software provider that has transformed the way small businesses manage their finances. With increasing adoption of digital solutions and a growing global customer base, Xero is well-positioned for strong revenue growth and market expansion in the years ahead.

Morgan Stanley currently rates Xero as a buy with a $220.00 price target.

Cochlear Ltd (ASX: COH)

Cochlear is the world leader in implantable hearing solutions, helping people regain their hearing and improve their quality of life. With rising healthcare spending, an ageing population, and technological advancements, Cochlear is set to maintain its competitive edge and grow its market share globally.

Last week, Citi put a buy rating and $300.00 price target on its shares.

Foolish takeaway

Iti s never too late to start investing, even at 50. By consistently putting money into high-quality ASX 200 shares like ResMed, Xero, and Cochlear, you could build a strong portfolio and take advantage of compounding returns.

With time, discipline, and the right investments, retiring rich is still within reach—no matter when you start.

The post No savings at 50? I'd buy ASX 200 shares and aim to retire rich appeared first on The Motley Fool Australia.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in ResMed and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025