Where do retirees invest most of their money?

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When people reach retirement age, they typically shift their financial focus from accumulating wealth to preserving it. In recent years, the trend has leaned more toward safe, income-producing assets that provide a hedge against inflation while also helping retirees pay the bills.

So which assets do retirees invest in the most? GOBankingRates asked Gemini this question, and it said that the typical retirement portfolio is divided into the following four major categories.

Also see five commonly recommended investment options for retirees.

fixed income assets

This is the largest segment for most retirees because it offers predictable payments. Here’s a breakdown of the top fixed income assets.

• Bond. This category includes US Treasuries, municipal bonds, and corporate bonds. Many retirees use bond laddering to ensure that the bonds mature each year to provide cash.
• Annuities. With annuities, retirees can essentially buy a “guaranteed pay check” for life, which helps reduce their fear of running out of 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.

dividend-paying stocks

Retirees don’t abandon the stock market entirely – but they change the way they look at it, preferring value stocks over growth stocks. Here are two popular categories among retirees.

• Dividend Elite. 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 an active landlord. These investments are legally required to pay out 90% of their taxable income to shareholders as dividends.

cash and liquid reserves

Gemini cited 2026 data showing that retirees in their 70s and 80s often hold 35% to 45% of their portfolios in cash or cash equivalents. These funds are used to cover two to three years of living expenses so that retirees do not have to sell stocks during a market crash.

Exclusive health and inflation hedge

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 are backed by the credit of the federal government, making them a safe investment.
• Health Savings Accounts (HSA). For retirees who haven’t yet spent it, an HSA is thought of as a “super-IRA” to pay for rising health care costs tax-free.

Average portfolio mix by age (2026 estimate)

Here’s how retirement portfolios are typically divided by age group, according to Gemini.

charles schwab Slightly different asset spreads were recommended based on the following age groups:

• Age 60-69. Consider a “moderate” portfolio of 60% stocks, 35% bonds and 5% cash/cash investments.
• 70-79. Moderately conservative (40% stocks, 50% bonds, 10% cash/cash investments).
• 80 and older. Conservative (20% stocks, 50% bonds, 30% cash/cash investments).

Editor’s Note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including possible loss of principal. Always consider your individual circumstances and consult a qualified financial advisor before making investment decisions.