If you're close to retirement, then I think it would be prudent to focus more on capital preservation and income than growth shares like Afterpay Ltd (ASX: APT).
But which shares should you buy for a retirement portfolio? Below I have picked out two top shares which I think would be great options for retirees. Here's why I like them:
Goodman Group (ASX: GMG)
The first company which I think would be a great addition to a retirement portfolio is Goodman Group. While property companies have been under a lot of pressure this year because of the negative impact of the pandemic, Goodman Group has come out of this relatively unscathed thanks to the way its portfolio is positioned.
In fact, last month the integrated commercial and industrial property group reaffirmed its earnings and distribution guidance for FY 2020. Management advised that its performance remains strong thanks to customer demand in the online, logistics, food, consumer goods, and digital economy. Given the structural changes we are seeing in the retail sector and with consumer behaviour, I think Goodman Group is well-positioned to deliver solid earnings and distribution growth for retirees for a long time to come.
Wesfarmers Ltd (ASX: WES)
I think it is hard to look past Wesfarmers when constructing a retirement portfolio. I believe the conglomerate is one of the highest quality companies on the Australian share market. Furthermore, with its proud history tracking back all the way to 1914, I don't think there is a danger of it going away anytime soon. Especially given the quality of its portfolio and the positive long term outlook that the majority of its businesses have.
Overall, I believe it is well-placed to deliver solid earnings and dividend growth for the foreseeable future. This could make it a great long term retirement share to own.
