You can start planning for retirement at any age, but the earlier you begin, the more time you have to grow your savings. A well-structured retirement portfolio can deliver financial security and peace of mind, giving you a reliable source of income to support your lifestyle in later years. 

A strong retirement portfolio should balance income generation, capital preservation, and long-term growth. Over time, your retirement asset allocation must evolve with your risk tolerance and financial goals. With a thoughtful strategy, you can safeguard your savings against inflation and market volatility while building wealth. 

Explore how to construct a robust retirement portfolio by age with practical strategies and real-world examples.

What is a retirement portfolio, and why does it matter?

A retirement investment portfolio is a collection of assets, including stocks, bonds, and cash, designed to protect your savings and foster long-term growth. The makeup of a retirement portfolio varies by individual and is influenced by various factors, such as age, career stage, and current financial needs. A well structured portfolio can help minimizes risk by diversifying assets, ensuring you’re not overly exposed to market swings or economic shifts. 

A well-structured portfolio is important because it can help ensure consistent income throughout retirement. Without a clear retirement income plan, your savings may be vulnerable to inflation and market downturns, or you might run out of money too quickly once you stop working. A retirement portfolio can help you maintain your lifestyle, cover healthcare costs, and navigate retirement with confidence. 

How retirement portfolios change by age

Building and managing a retirement account is an evolving process that shifts with your life stage and investment goals. Younger investors often create more aggressive portfolios to maximize growth, as they have time to recover from market dips. As retirement approaches, the focus shifts toward wealth preservation and income generation. 

Here’s how a retirement portfolio can change near and after retirement:

• Ages 60–69 (growth portfolio): A balanced approach can include 60% stocks, 35% bonds, and 5% cash or cash equivalents. Stocks provide growth to counter inflation, while bonds and cash offer stability. 
• Ages 70–79 (moderately conservative portfolio): The allocation may shift to 40% stocks, 50% bonds, and 10% cash. With a shorter time horizon, the emphasis is on income generation and capital preservation, though some stock exposure remains to hedge against longevity and inflation.
• Ages 80 and above (conservative portfolio): A conservative mix, such as 20% stocks, 50% bonds, and 30% cash, prioritizes safety and liquidity. At this stage, protecting capital and having accessible funds take precedence. 

Of course this investment mix is hypoethetical only and you should consult your advisor for personal investment advice.

5 retirement investment strategies to balance growth and security

To build a balanced, resilient retirement portfolio, consider these five investment strategies.

1. Bond ladders

Creating a bond ladder involves purchasing bonds with staggered maturity dates, providing predictable income and managing fluctuating interest rates. For example, you might buy five bonds maturing in one, two, three, four, and five years. As each bond matures, you reinvest the principal in a new bond at the end of your ladder — in this case, a new five-year bond. This approach can help ensure steady cash flow and reduces the impact of rate changes, making it ideal for retirees seeking stability. A bond ladder, depending on the types and amount of securities within the ladder, may not ensure adequate diversification of your retirement portfolio. This potential lack of diversification could result in increased volatility. You must perform your own evaluation of whether a bond ladder and the securities held within it are consistent with your investment objective, risk tolerance, and financial circumstances.

2. Dividend-paying stocks

Dividend-paying stocks, particularly from stable companies with large market capitalization, can offer a dual benefit: Regular income and the potential for capital appreciation. They can also protect against inflation, as dividends often grow over time and can be reinvested to compound returns. While stocks inherently carry more risk than bonds, focusing on established companies can help offer a balance of growth potential and consistent payouts that contributes to portfolio security. There are the risks associated with investing in dividend paying stocks, including but not limited to the risk that stocks may reduce or stop paying dividends.  

3. Annuities

Annuities can be powerful tools for generating guaranteed income in retirement. In exchange for a lump sum or a series of payments, an insurance company provides a reliable income stream for a specified period or for life, helping mitigate longevity risk. Certain types of annuities, such as fixed annuities, deliver predictable returns regardless of market performance. Be sure to understand the risks associated with annuities and retirement, including inflation risk.

4. REITs

Real estate investment trusts (REITs) offer exposure to the real estate market without direct property ownership, delivering a balance of growth potential and income security. REITs come with several risks, including market risk, interest rate risk, property-specific risks, and potential for higher taxes on dividends. Understanding these risks is crucial before investing in REITs, whether directly or through funds

5. Cash reserves

Maintaining adequate cash reserves — typically one to two years of living expenses — in cash or cash equivalents (like money market funds or short-term certificates of deposit) ensures liquidity during market downturns, avoiding the need to sell investments at a loss. 

Real-world retirement portfolio examples

To illustrate how these strategies come together, here are three potential retirement portfolios.

Portfolio 1: Moderate risk, age 65

The best retirement portfolio for a 65-year-old depends on individual goals and risk tolerance, The hypothetical example below illustrates what a moderate portfolio could look like:

• Allocation: 60% stocks (dividend-paying and growth-oriented), 30% bonds, 5% fixed annuities, and 5% cash reserves.
• Rationale: Dividends and bond interest generate a stable income stream. Sufficient stock exposure combats inflation and allows for continued growth. Cash covers short-term needs, while fixed annuities add another layer of security. 

Portfolio 2: Conservative income-focused, age 75

This portfolio is a hypothetical example of a portfolio for a retiree who prioritizes consistent income and capital preservation and has a lower tolerance for market fluctuations.

• Allocation: 40% stocks (dividend-focused), 40% bonds (short- and intermediate-term), 10% fixed annuities,  and 10% cash.
• Rationale: Reduced stock exposure limits volatility, while bonds and annuities could provide reliable income. REITs add diversification, and cash ensures liquidity.

Portfolio 3: Ultra-conservative, age 85+

This portfolio is a hypothetical example of what a portfolio could look like for an individual in advanced retirement whose primary goal is ensuring lifelong income with minimal risk exposure.

• Allocation: 15% stocks (dividend-focused), 45% bonds (short-term), 30% annuities, and 10% cash.
• Rationale: Heavy bond and annuity weighting ensures stable income and principal protection, with minimal stock exposure for modest growth. Cash covers emergencies.

These examples illustrate how portfolios could shift toward conservatism with age, balancing income, capital preservation, and inflation protection.

How Gainbridge can support your retirement portfolio

Gainbridge annuities offer added stability to any retirement portfolio, providing the peace of mind that traditional investments may not fully deliver. Our tax-deferred products provide growth potential while ensuring principal protection. 

To explore how annuities can enhance your retirement plan, contact Gainbridge today and take the first step towards a more secure retirement.

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This article is intended for informational purposes only. It is not intended to provide, and should not be interpreted as, individualized investment, legal, or tax advice. The GainbridgeⓇ digital platform provides informational and educational resources intended only for self-directed purposes.

Annuities issued by Gainbridge Life Insurance Company located in Zionsville, Indiana. Guarantees are based on the claims paying ability and financial strength of the issuing insurance company.