If you're in or nearing retirement, it may be time to start focusing a little on capital preservation and income. This means investing in lower risk shares rather than fledgling growth shares.
But which ASX 200 shares might be suitable?
Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here's what you need to know about them:
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Centuria Industrial REIT (ASX: CIP)
The first ASX 200 share to consider for a retirement portfolio is Centuria Industrial.
This property company owns a portfolio of high quality industrial assets that has been constructed with the aim of delivering consistent income and capital growth to investors.
Centuria Industrial's portfolio is heavily weighted to areas of the economy that are growing fast and are in demand from tenants. This includes properties linked to the production, packaging, and distribution of consumer staples, telecommunications and pharmaceuticals.
UBS is positive on the company and currently has a buy rating and $3.60 price target on its shares. The broker is also forecasting dividends of 16 cents per share in FY 2023 and FY 2024. This implies yields of 4.5% over the next couple of financial years.
Woolworths Limited (ASX: WOW)
Another ASX 200 share that could be a top option for a retirement portfolio is Woolworths.
This retail conglomerate is the name behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, and Big W.
As we saw during the pandemic, Woolworths has incredible defensive qualities. And as we are seeing right now, the company is benefitting from food inflation. All in all, this makes it a bit of an all-weather stock, which is exactly why it could be a good pick for retirees.
Goldman Sachs is a big fan of the company. It likes Woolworths due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.
The broker currently has a conviction buy rating and $41.20 price target on the company's shares. Its analysts are also forecasting fully franked dividend yields of ~3% in the coming years.
