Insight
The Three Rs of Retirement
Retirees are often urged to reduce investment risk, but that can create unintended risks. Our research shows that adding equity exposure, focusing on real returns, and demanding reliable income may help improve retirement outcomes.
Authors
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Sophie Scott, CFA
9/11/2025
12 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: Investing in an income-generating strategy may help with consistent sustainable support for retirement spending needs.