When you first start investing you might seek the high risk, high reward gains from fledgling growth shares. After all, if things go wrong you have plenty of time to recover your losses.
But as you enter retirement I think these types of investments should take a backseat. Instead I would focus on investments that offer income and capital preservation.
Three shares which I think are perfect for retirees right now are as follows:
Coles Group Ltd (ASX: COL)
I think this supermarket giant would be a great option for a retirement portfolio due to its defensive qualities and plans to pay out between 80% and 90% of its earnings as dividends. In addition to this, I believe its long-term growth prospects are positive due partly to its focus on automation. The company recently signed a deal for two new automated distribution centres which are expected to help the company slash operating costs and lift its margins.
National Storage REIT (ASX: NSR)
This real estate investment trust could be another quality option for retirees. At the last count National Storage provided self-storage solutions to over 35,000 residential and commercial customers through its network of 127 storage centres across Australia and New Zealand. Pleasingly, management sees a lot of opportunities for the trust to grow its network meaningfully in the future. I believe this growth through acquisition strategy will lead to a solid lift in profits and its distribution over the next few years. At present its units provide a trailing 5% distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A final option for retirees to consider is this airport operator. I believe that Sydney Airport is well-positioned to continue growing its earnings and dividend at a solid rate over the coming years due to the tourism boom and Sydney Airport's position as the main gateway into Australia. The company's shares currently offer a trailing 5.4% dividend.
