Generally, an individual’s risk appetite will fall with age. This is because someone in their 20s has a lot more time to recoup their losses compared to someone in their 60s who is nearing retirement and will soon be reliant on their nest egg to fund their future lifestyle.
In light of this, it may be important to focus on capital preservation when you are reaching retirement and select shares that are consistent with your risk profile and investing timeframe. With that in mind, here are a couple of shares that could be suitable for a well-balanced retirement portfolio:
National Storage REIT (ASX: NSR)
National Storage could be a good option for a retirement portfolio. It is one of the region’s largest self-storage operators with a total of over 200 centres in the ANZ market. Through this growing network the company provides tailored storage solutions to tens of thousands of residential and commercial customers.
It has been growing at a solid rate over the last few years thanks to its strong position in a fragmented market and its growth through acquisition strategy. The good news is that management still sees plenty of room to grow both organically and through acquisitions and developments.
According to a note out of Ord Minnett, its analysts have an accumulate rating and $2.20 price target on its shares. The broker is forecasting an 8.2 cents per share dividend in FY 2021 and 8.6 cents per share in FY 2022. Based on the current National Storage share price of $2.07, this represents 4% and 4.15% yields.
Transurban Group (ASX: TCL)
Another ASX retirement share for investors to look at is this leading toll road operator. Transurban owns a portfolio of 17 key roads in Australia and four in North America. It also has a significant project pipeline across its networks that could support its growth in the coming years.
Although Transurban was hit hard by the pandemic, it has been seeing significant improvements in recent months. These improvements are expected to continue as vaccines are rolled out and mobility increases.
One broker that is particularly positive on the company is Ord Minnett. Its analysts currently have a buy rating and $16.00 price target on the company’s shares. This compares to the latest Transurban share price of $14.84.
Its analysts are forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. This will mean yields of 2.5% and 3..9%, respectively, over the next two years.