Generally, an individual's risk appetite will fall with age. This is because someone in their 20s or 30s 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, if you're building a retirement portfolio, it could be worth selecting shares that are consistent with your risk profile and investing goals.
With that in mind, listed below are a couple of ASX 200 shares that Morgans rates as buys and could be suitable for a well-balanced retirement portfolio:
Coles Group Ltd (ASX: COL)
The first ASX 200 share that could be a top option for a retirement portfolio is Coles.
It is of course one of Australia's big two supermarket operators. In addition, Coles has a sprawling network of liquor stores.
Coles could be worth considering due to its solid growth prospects thanks to its refreshed strategy, its generous dividend policy, and its defensive qualities. Another positive is the company's focus on automation which will cut costs and support its online business.
Morgans is positive on the company in the current environment. It commented:
[W]e continue to see COL as offering good value with the company possessing defensive characteristics that should hold up relatively well in a weaker economic environment.
The broker currently has an add rating and $20.00 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another top ASX 200 option for a retirement portfolio could be Telstra.
Telstra also has defensive qualities, shares a good portion of its profits with shareholders, and has solid growth prospects. The latter is being driven by the telco giant's T25 strategy, which has just replaced the successful and transformational T22 strategy.
The team at Morgans is very positive on the company and believes this new strategy will unlock value for investors. It commented:
After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote on Telstra's legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS's high quality long life assets like InfraCo are worth substantially more, in our view. We don't think this is in the price so see it as value generating for TLS shareholders.
Morgans has an add rating and $4.60 price target on its shares.
