When you're young, you might look for high risk, high reward growth shares. You can do this because if things don't go to plan, you have plenty of time to recover from your losses.
However, when you're in retirement or approaching it, you may be better focusing on income and capital preservation.
With that in mind, listed below are two ASX 200 shares that could be good options for a retirement portfolio. Here's what you need to know about them:
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Transurban Group (ASX: TCL)
The first ASX 200 share that could be a top option for a retirement portfolio is toll road operator Transurban.
It is the owner of 17 roads in Australia, four in North America, and a significant project pipeline across its networks that could support its long term growth.
The team at Morgans appear to believe the company's shares would be great long term options for investors. Particularly given its "exposure to regional population and employment growth and urbanisation."
Morgans currently has Transurban's shares on its best ideas list with a $13.85 price target.
In addition, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 66 cents in FY 2024. Based on the current Transurban share price of $12.53, this will mean yields of 4.2% and 5.25%, respectively.
Woolworths Limited (ASX: WOW)
Another ASX 200 share to consider for your retirement portfolio is retail conglomerate Woolworths.
Woolworths could be a top option because of its strong brands, entrenched customer base, and defensive qualities. The latter was on display during the pandemic and could prove invaluable if the Australian economy falls into a recession in the next 12 months.
Goldman Sachs is a big fan of the company. This is due to its digital and omni-channel advantage, which the broker believes will drive further market share and margin gains in the coming years.
Goldman currently has a conviction buy rating and $42.70 price target on the company's shares. In addition, it is forecasting fully franked dividend yields of ~3% in the coming years.
