If you’re nearing retirement, it may be time to start focusing a little on capital preservation. This means investing in lower risk shares rather than fledgling growth shares.
But which shares might be suitable? Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here’s what you need to know about them:
National Storage REIT (ASX: NSR)
National Storage could be a good ASX share for a retirement portfolio. It is one of the region’s largest self-storage operators with 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.
National Storage has been growing at a solid rate over the last decade thanks to its strong position in a fragmented market and its growth through acquisition strategy. This led to the company reporting a 28% increase in underlying earnings to $86.5 million in FY 2021.
The good news is that management still sees plenty of room to grow both organically and through acquisitions and developments. It is targeting underlying earnings per share growth of at least 10% in FY 2022.
Suncorp Group Ltd (ASX: SUN)
Another ASX share to consider for a retirement portfolio is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.
Like National Storage, it was on form in FY 2021. For the 12 months ended 30 June, it reported a 42.1% jump in cash earnings to $1,064 million. This allowed the insurance giant to declare a special dividend and announce a $250 million on-market share buyback.
Suncorp also spoke positively about the future and its FY 2023 plan. It is aiming to deliver a growing business with a sustainable return on equity above the through-the-cycle cost of equity by that year.