Of Retirement Age

In the current uncertain economic climate, those of retirement age — one of the largest and wealthiest demographics in America — stand to potentially lose much needed savings and wealth unless invested properly. We believe our analysis and recommendations in this report reveal several ways in which those looking to retire can preserve purchasing power while also earning income, compounded over time.

This demographic is one of the largest and most prosperous in the United States and are defined as adults born between 1946 and 1964, which means they are between the ages of 60 and 78 years old as of January 1, 2024.

There are approximately 76 million in that age range in the United States and their families account for 48%, or nearly half, of all US households. Nearly 32% of two-person households are headed by those of retirement age; in three-person households, 52% are led; in households with four or more members, 64% have an adult in this age group as head of the household.

How to Think About Investing

Bulk Up On Dividends
Those at or close to retirement age should buy dividend-paying stocks to stay ahead of inflation. As stock prices rise over time, compared to a bond, high quality dividend paying stocks also have the ability to increase dividends (yield), versus a bond which has a fixed interest rate and can be called. Even in a down market, investors will collect a stream of income from the equities, so why not get paid while you wait?

Value Stocks Are Perfect for Retirement
According to our analysis, a $1,000 principal investment in a dividend paying stock, with a 3% annual dividend yield growing at 5% per year, and modest 5% annual stock price appreciation, will grow to more than $4,000 (342%) at the end of 20 years. This return compares to just over 200% for Treasuries, and a 20 year actual historical return of 191% for the S&P 500.

We provide more detail into how CAIM works with retirees and those looking to retire to help them achieve their investing goals in our report.

Catherine Avery is a regular contributor to one of the most widely known consumer insight companies. Please visit www.thirdage.com to read more.

CAIM’s analysis and recommendations in this report reveal several ways in which those who are or are looking to retire can preserve purchasing power while also earning income.

LEARN MORE