The Right Investments for Retirees

Smart income and growth strategies can help your retirement savings last.

Khongtham/Shutterstock

If you’re in or near retirement, you may need to make some changes or additions to your portfolio. At this point, you want securities that can provide a steady and predictable stream of income. But you also want growth potential as the average retirement can last 20 or more years. Plus, life expectancy in the United States has been on the rise.

But there are also unpredictable variables that would impact the strength of your savings in retirement, such as inflation and market conditions. This could impact whether you outlive your retirement savings.

So today, we’re going to look at some investments you may want to consider if you’re in or near retirement.

High-Quality Corporate Bonds

Corporate bonds are generally considered less risky than stocks. And they can deliver a steady stream of income, making these potentially powerful tools for retirees. But not all bonds are created equal. You should seek out investment-grade bonds from companies with a history of strong financials and performance, as well as good credit histories.

Some investors also seek out bond exchange-traded funds (ETFs). These are professionally managed funds that track an index of bonds and aim to reflect the return of that index.

Treasury Securities

Treasury securities are debt instruments issued and backed by the full faith of the U.S. government. This makes them among the safest securities around.

There are three main types of Treasury securities: bonds (T-bonds), notes (T-notes), and bills (T-bills).

These are issued with different interest rates and maturities that can span a few days to 30 years. Plus, interest earned from these types of securities are generally exempt from state and local taxes.

Here’s a quick glance.

Treasury bonds can be purchased in durations of 20 or 30 years. These pay a fixed interest rate every six months until they reach maturity.

Treasury bills can be purchased with terms ranging from four weeks to 52 weeks. Bills are sold at a discount to its face value. When the bill matures, you get its face value.

Treasury notes are sold with terms of two, three, five, seven, or 10 years. T-notes pay a fixed rate of interest every six months until maturity.

Treasury-Inflation Protected Securities (TIPS)

Treasury inflation-protected securities (TIPS) are designed to defend your savings from inflation based on changes in the Consumer Price Index (CPI). They also pay interest every six months and are backed by the full faith of the U.S. government.

TIPS are sold with maturities spanning five, 10, or 30 years.

Here’s how they work: Let’s say you bought $1,000 worth of TIPS with a 5 percent annual interest rate, and inflation rose 7 percent during that year. As a result, the principal of the TIPS would climb by 7 percent to $1,070. Your interest payments would be calculated based on the new face value. Thus, payments would increase to $74.90 (7 percent of $1,070) for that year.

And once a TIPS reaches maturity, you get either the higher inflation-adjusted principal at the time or the original principal, whichever is greater. You’d never get less than the original principal.

Dividend ETFs

Some companies make regular payments to shareholders out of their profits in the form of dividends. By investing in dividend-paying stocks, you can potentially benefit from regular income as well as capital appreciation.

But you can also turn to dividend ETFs. These professionally managed funds can invest in sometimes hundreds of dividend-paying stocks chosen by professional asset managers.

Dividend ETFs have different yields. But you may want to avoid simply chasing the highest-yielding ETFs, because this can be risky.

You’d want to look for ETFs that not only invest in high-yield stocks but also screen companies for factors like strong financials and a history of consistently paying and increasing dividends.

Real Estate Investment Trusts (REITs)

A real estate investment trust (REIT) is a company that holds and manages various pieces of income-producing real estate like warehouses or retail centers. For investors, REITs can provide capital appreciation as well as a steady stream of income. In fact, REITs must pay out at least 90 percent of their income to shareholders.

REITs trade on exchanges much like ordinary stocks. And for added benefits, you also can invest in REITs through tax-advantaged accounts like an individual retirement account (IRA).

The Bottom Line

Nearing or being in retirement is a crucial time to make sure you have the potential to avoid outliving your savings by receiving steady streams of income as well as growth potential. There are certain securities that may help you achieve this goal such as dividend-paying ETFs, Treasury securities, and investment-grade corporate bonds.

The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.