Retirees Urged to Keep 30% to 50% in Stocks for 20- to 30-Year Growth
Updated
Updated · USA TODAY · Jul 18
Retirees Urged to Keep 30% to 50% in Stocks for 20- to 30-Year Growth
2 articles · Updated · USA TODAY · Jul 18
Summary
20 to 30 years of retirement can leave savers exposed if they move entirely into bonds, cash and CDs, with advisers warning that a 0% stock allocation may undermine long-term growth.
Stocks remain central because they have historically outpaced inflation over long periods, helping retirees fund regular withdrawals and raise spending as living costs climb.
30% to 50% in stocks is presented as a more balanced range for many retirees, preserving growth potential without requiring an all-equity portfolio.
Three years of expenses in cash can cushion market downturns, letting retirees avoid selling stocks at a loss while waiting for portfolios to recover.