How Much Investment Risk Should You Take on During Retirement?

Core Insights - Retirement income is heavily influenced by investment strategies, requiring careful evaluation of risk levels to support desired lifestyles [1][2][3] Investment Strategies - Many retirees instinctively prefer safer investments, often shifting from equities to bonds and cash, but this conservative approach can lead to the risk of outliving savings [4][5] - The "cost of caution" is significant, as retirees may face 25 to 30 years of living expenses, and inflation can erode savings if investments are overly conservative [5] - Equities are essential for long-term wealth preservation, historically outpacing inflation, but retirees should adjust their allocations based on income needs, time horizon, and comfort levels [5][6] Risk Management - Risk management in retirement is not static; retirees can adjust their investment strategies over time to align with their longevity and financial goals [6]