Insight
The Three Rs of Retirement
Conventional wisdom encourages retirees to de-risk portfolios, but we believe equities remain essential. Our approach to equity in retirement is built on three principles: take more risk, focus on real returns, and demand reliable income.
Authors
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Sophie Scott, CFA
9/11/2025
13 min read
Topic
Retirement
Key takeaways
- Take more risk: Portfolios with 10% equities had a 7–9% risk of running out of money, compared with just 1–2% risk for portfolios with 40–50% equities.
- Focus on real returns: High-dividend-paying equities historically delivered strong long-term real returns over other assets, helping to protect against inflation.
- Demand reliable income: A targeted smooth yield can help provide more reliable income for retirement spending needs.