The Case for Investing in Bonds During Retirement

Anthony Webb

IB#9-17

The brief’s key findings are:

  • Retirees seeking safe investments generally prefer short-term deposits, which preserve capital but offer no guaranteed return.
  • Fluctuating returns can jeopardize a household’s living standard if short-term interest rates fall.
  • In contrast, bonds provide a guaranteed return and – if held to maturity – also preserve capital. The bottom line: bonds should be a standard component of any retiree’s portfolio.