The Case for Investing in Bonds During Retirement
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.