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 could 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:
Coles Group Ltd (ASX: COL)
The first ASX share that could be a top option for a retirement portfolio is this supermarket giant.
This is due to Coles’ solid growth prospects thanks to its refreshed strategy, its generous dividend policy, and its defensive qualities. The latter was on display for all to see during the pandemic. Another positive is the company’s focus on automation which will cut costs and support its online business.
The team at Citi is positive on Coles. It recently upgraded the supermarket giant’s shares to a buy rating with a $19.60 price target. This implies almost 20% upside for investors, as well as an attractive ~4% yield based on Citi’s forecasts.
Telstra Corporation Ltd (ASX: TLS)
Another top option for a retirement portfolio could be Telstra.
As with Coles, Telstra has defensive qualities, a favourable dividend policy, and solid growth prospects. The latter is being underpinned by the telco giant’s T25 strategy which replaces the highly successful and transformational T22 strategy later this year.
Morgans is very positive on Telstra’s outlook and has put an add rating and $4.55 price target on its shares. The broker also expects attractive fully franked dividend yields of 3.8% over the next couple of financial years.