If you are building a retirement portfolio, then it could be worth considering the ASX 200 blue chip shares named below.
These shares have been tipped as buys by analysts and could have qualities that make them suitable for retirees.
Here's what you need to know about these picks:
Coles Group Ltd (ASX: COL)
The first ASX 200 blue chip share for retirees to consider buying is Coles. It is of course one of the big two supermarket operators.
As providers of our daily essentials, consumers are forced to full their baskets each week no matter how much supermarkets raise their prices. This gives Coles very defensive earnings, which is a great quality for a retirement share.
Bell Potter is very positive on the company and has named it on its Australian equities panel. These are shares that it believes offer attractive risk-adjusted returns over the long term. It notes that it considers "the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, strong management teams and competitive advantages."
Commenting on Coles, the broker said:
Costs are expected to remain elevated but should moderate through FY24 and FY25 as general inflation tapers off. In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.
Transurban Group (ASX: TCL)
Another ASX 200 blue chip share that could be a great option for a retirement portfolio is Transurban.
It is a toll road leader with a portfolio of important roads across Australia and North America. This includes CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane.
As these roads are always in need, particularly given population growth, traffic congestion, and urbanisation, Transurban also has defensive qualities that could make it a good option for retirees.
Bell Potter is also very positive on this name and has it on its Australian equities panel. It said:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
