What are some of the safest investments for seniors?

Summary 

What is a safe investment? 

All investments come with a degree of risk, as none are 100% guaranteed to produce a return. However, some investments are deemed lower risk than others. 

Safe investments are investments that don’t necessarily yield high rewards but come with the added benefit of a lower loss risk. Some examples of safe investments include certificates of deposit (CD), bonds, annuities, and stocks.  

Seniors and retirees often prefer safer investments, as they can have more predictable financial outcomes. After leaving the workforce, people naturally become more conservative about their funds to ensure they live out their golden years as comfortably and securely as possible. Risking major losses is not appealing, and security and stability become all-important.  

The best, safest investments for elderly people require minimal administration, have a low volatility rate, and are likely to result in an easy-to-measure outcome.  

What are the safest investment options for seniors? 

The best investments for seniors are those that are low-risk.  

Low-risk investments are easier and safer to manage and are more reliable in terms of investment outcomes.  

The best investment options for retirement that are deemed safe and comparatively low-risk include: 

Bonds

A bond is a fixed-income security that pays interest back to bondholders at regular intervals. Bonds are considered one of the safest investments for seniors because governments and corporations back them.  

Annuities

Annuity funds are one of the most common investment options for seniors and retirees. By providing tax-deferred growth, annuities can help seniors maximize their savings while receiving regular interest payments and adding to their financial security.  

Certificates of Deposit

A CD is a time-bound deposit offered by some banks at a fixed interest rate. With predictable maturity rates and fixed interest rates, CDs offer retirees a reliable flow of interest payments that can grow substantially over time.  

Stock options

Certain stocks, such as dividend-paying stocks and preferred stocks, can make very lucrative and reliable investments. However, as is the case with all stocks, choosing a company with a strong financial track record is crucial for positive results.  

High-yield savings accounts

A high-yield savings account gives you a greater return on your money than a traditional savings account. While the return is typically higher, it is not guaranteed. Most accounts have a variable APY, meaning the yield is subject to change. To ensure your account is safe, it’s best to always look for a bank that is FDIC-insured, meaning it does not have the risk level of other investments.

Treasury inflation-protected securities (TIPS)

TIPS are government bonds that match the rise and fall of inflation, so when it goes up, so does your interest rate. As the Federal Government backs TIPS, they are generally considered a safe investment and a good way to boost future retirement income.

While the above investment options are low-risk, no investment is 100% risk-free. Low risk means the probability of losing money is low but not impossible.  

What should seniors look out for when making investments? 

When it comes to making any investment, there are certain things to look out for to ensure your decision suits your financial circumstances and needs.  

Some of the most important factors to consider when looking at the best safe investments for seniors include longevity, risk, and taxes: 

Where can I find expert financial advice? 

All of these investment types fall into the “safe” category due to their consistency, reliability, and low-risk correlation. However, no investment is guaranteed to be 100% safe, and this is something that must always be considered.  

To find out more about the best investments for seniors and how to financially prepare for retirement, let Unbiased match you with an expert financial advisor.  

You can learn about the safest investments for retirement and make informed choices about the options that suit your financial situation and risk appetite.  

Find your financial advisor now.