When people hit retirement age, they typically move their financial focus from accumulating wealth to preserving it. In recent years, this trend has leaned heavily toward safe, income-generating assets that provide a hedge against inflation while also helping retirees pay the bills.
Read More: I Retired a Millionaire — The Best $30,000 I Ever Spent Preparing for Retirement
Learn More: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home
So which assets do retirees invest in most? GOBankingRates asked Gemini that question, and it said that the typical retiree portfolio is broken down into the following four major categories.
Also see five investment options commonly recommended for retirees.
This is the largest segment for most retirees because it provides predictable payments. Here’s a breakdown of the top fixed-income assets.
-
Bonds. This category includes U.S. Treasurys, municipal bonds and corporate bonds. Many retirees use bond ladders to ensure that a bond matures every year to provide cash.
-
Annuities. With annuities, retirees can essentially buy a “guaranteed paycheck” for life, which helps alleviate the fear of outliving their money.
-
Certificates of deposit (CDs) and money market accounts. In 2026, many retirees are keeping significant portions of their “safe” money in high-yield savings accounts and certificates of deposit to earn 4% to 5% interest.
Check Out: This ‘Boring’ Investment Could Be the Secret to Never Running Out of Retirement Income
Retirees don’t abandon the stock market entirely — but they do change how they approach it, favoring value stocks over growth stocks. Here are two popular categories among retirees.
-
Dividend Aristocrats. These are blue chip companies, often in the S&P 500, that have increased their dividends for 25 or more consecutive years.
-
Real estate investment trusts (REITs). These allow retirees to invest in real estate without the headache of being active landlords. These investments are legally required to pay out 90% of their taxable income to shareholders as dividends.
Gemini cited 2026 data showing that retirees in their 70s and 80s often hold 35% to 45% of their portfolio in cash or cash equivalents. These funds are used to cover two to three years’ worth of living expenses so retirees don’t have to sell stocks during a market crash.
This category includes the following:
-
Treasury Inflation-Protected Securities (TIPS). These bonds are popular among retirees because their principal value increases with inflation. Another advantage is that they’re backed by the creditworthiness of the federal government, making them a safe investment.
-
Health savings accounts (HSAs). For retirees who haven’t spent them yet, HSAs are treated as “super-IRAs” to pay for rising healthcare costs tax-free.
Leave a Reply