With the current official cash rate just a paltry 1.5%, it certainly is a great time to be a borrower. But for retirees these low rates are likely to be a challenge.
Finding a sufficient source of income to live from in retirement is vitally important. With savings accounts and term deposits not cutting the mustard, I believe the share market is the best option for retirees.
The following three high-yielding shares could be a great fit for retirees in my opinion:
Suncorp Group Ltd (ASX: SUN)
This leading insurer is expected to provide a fully franked 5.3% dividend in FY 2017 according to CommSec. Not only does this beat the market average by some distance, but it is also the biggest yield on offer from Australia's big insurance companies. Thanks to its new operating model I'm optimistic Suncorp will turn around its faltering performance and return to growth again this year. This could make it an opportune time to invest.
Telstra Corporation Ltd (ASX: TLS)
This telco giant is an obvious choice, but there's good reason for that. In the next 12 months its shares are expected to provide a fully franked 6.1% dividend. Whilst its core businesses are slowing, I remain confident that opportunities in Asia and the healthcare sector will help drive earnings ever so slightly higher each year for the next few years.
WAM Capital Limited (ASX: WAM)
This Australian investment company had a fantastic FY 2016 which saw its portfolio grow by a whopping 21.6%. With a long history of beating the benchmark, I'm confident that it will be more of the same in 2017. At present its shares provide a trailing fully franked 6% dividend. Due to the success of FY 2016 I expect to see WAM increase its generous dividend further in the year ahead.
