When you first start investing you might focus on fledgling growth shares that offer potentially strong returns like Afterpay Touch Group Ltd (ASX: APT). After all, if things don't go well you have plenty of time to recover your losses.
But as you near retirement I believe it would be prudent to put these types of investments on the backburner in favour of ones that offer income and capital preservation.
Three shares which I think are perfect for a retirement portfolio right now are as follows:
National Storage REIT (ASX: NSR)
I'm a big fan of this self-storage owner-operator due to the resilience of its business and management's focus on driving increased income from multiple revenue streams. Thanks to a combination of acquisitions, new developments, and increased occupancy, the company reported an 11% increase in total assets under management and 17.4% increase in underlying earnings during the first half. In light of this strong half, National Storage provided full year distribution guidance of 9.6 cents to 9.9 cents per unit. This equates to a yield of between 5.5% to 5.7%.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
I think Sydney Airport would be a great option for a retirement portfolio. Due to the combination of increasing global tourism and its position as the main gateway into and out of Australia, I believe it is well-positioned to grow its income and its dividend at a solid rate over the next decade. At present Sydney Airport's shares offer a trailing 5% dividend yield.
Wesfarmers Ltd (ASX: WES)
Another share to consider is this conglomerate. It has a long track record of creating strong returns for its shareholders (~12% per annum over the last ten years) and I feel confident that management is capable of continuing this trend long into the future through astute investments. At present I estimate that its shares will provide a fully franked dividend yield of approximately 4.7% over the next 12 months.
