- Retirees may feel they’re protecting their nest eggs by getting out of stocks entirely.
- However, by doing so they’d increase their risk of outliving their savings during retirement, which may last decades, experts said.
Retirees may think moving all their investments to cash and bonds — and out of stocks — protects their nest egg from risk.
They would be wrong, experts say.
Most, if not all, retirees need stocks — the growth engine of an investment portfolio — to ensure they don’t run out of money during a retirement that might last decades, experts said.
“It’s important for retirees to have some equities in their portfolio to increase the long-term returns,” said David Blanchett, head of retirement research for PGIM, an investment management arm of Prudential Financial.
Source: https://www.cnbc.com/2025/04/16/heres-why-retirees-shouldnt-fully-ditch-stocks.html