If you’re nearing retirement age in Australia you’ll be conscious of the fact that your retirement savings are going to be stretched thin in your golden years.
Australia’s proportion of retirement-aged people is expected to increase by 50% over the next 35 years, which will put an unprecedented strain on the country’s walking frame manufacturing capability, not to mention the hospital and healthcare sector.
In order to fund your immediate or future retirement, perhaps you should consider buying shares in companies that you will rely on as you get older. As money spent at the company may just end up back in your hands via dividend or share price growth.
Here are 4 top stocks to fund your retirement:
Fleetwood Corporation Limited (ASX: FWD) had a tough year as the group’s portable accommodation segment was hammered by the slowdown in mining construction and caravan sales have disappointed. The share price is down 43% already in 2014, which isn’t a great sign, but if more cashed up baby boomers decide that a long caravan holiday is the way to spend their twilight years then Fleetwood is in position one locally.
As bad as it sounds, due to the aging population there are going to be more deaths annually than any time before. InvoCare Limited (ASX: IVC) is Australia’s, New Zealand’s, and Singapore’s largest funeral, cemetery and crematorium operator and is perfectly positioned to take advantage of this trend.
Japara Healthcare Ltd (ASX: JHC) is one of Australia’s many aged care facility operators. The group owns 39 properties in Victoria, South Australia, NSW and Tasmania. Since listing earlier in 2014, Japara’s share price has settled from some violent early price swings to stabilise at around $2.35. Aged care is becoming increasingly important for older Australians that are living longer than previously due to the wonders of modern medicine.
And finally, the biggest beneficiary of all this will likely be Ramsay Health Care Limited (ASX: RHC). Ramsay is the largest private hospital operator in Australia and is perfectly placed to handle increased demand by expanding bed numbers in expectation of future demand.
The concern for everyday investors is that these companies already appear a little expensive.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
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*Returns as of February 15th 2021
Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie
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