Which investments make sense at age 60? (Learn More)
Reaching age 60 often prompts a closer look at where your money is invested and how it will support the years ahead. For many Canadians, this stage is less about chasing high returns and more about protecting savings, generating reliable income, and staying ahead of inflation while keeping risk at a comfortable level.
Turning 60 is a natural moment to reassess how your savings are invested. Retirement may be close or already underway, and the focus usually shifts from building wealth quickly to preserving what you have and making it last. For Canadians, that means thinking carefully about risk, income needs, taxes, and how different investment choices fit together.
What are good investments for seniors at 60
When considering what are good investments for seniors at 60, it helps to start with your time horizon. Many people underestimate how long retirement can last. A 60 year old might reasonably plan for 25 to 35 more years of living expenses. That long time frame means you usually still need some growth, not just cash in the bank.
Good investment options often fall into a few broad categories. Cash and savings products, such as high interest savings accounts, are useful for short term needs and emergency funds. Guaranteed Investment Certificates, or GICs, provide principal protection and a known interest rate for a set term, which can be reassuring for seniors. Diversified bond funds or bond exchange traded funds can provide interest income and lower volatility than stock funds, while still offering some return above cash over time.
Many seniors also keep some exposure to stocks through dividend paying shares or low cost index funds. Although stocks can fluctuate in the short term, they offer better long term growth potential than fixed income alone. For a 60 year old, a common approach is not to avoid stocks entirely but to reduce the overall stock percentage so that short term market swings are less likely to disrupt spending plans.
Safe investments for retirees in Canada
Safe investments for retirees in Canada usually emphasize capital preservation and predictable income. High interest savings accounts at major Canadian financial institutions can be a secure place for short term cash, especially when they are covered by deposit insurance such as CDIC, up to applicable limits. Short term GICs, like 1 to 3 year terms, can be useful for money you expect to spend soon, because the principal is protected and the interest rate is known in advance.
Government bonds issued by the Government of Canada or provincial governments are generally considered low risk, especially when held through a diversified bond fund. Some retirees also consider annuities sold by insurance companies, which can convert a lump sum into a guaranteed stream of income for life or for a set period. These products reduce the risk of outliving your savings but also reduce flexibility, since the money is usually locked in once the annuity is purchased.
Safe investments for retirees can also include certain conservative mutual funds or exchange traded funds that focus on high quality bonds and blue chip dividend stocks. The key is looking at the underlying holdings, fees, and your comfort with price changes. Even safe investments for seniors can go up and down in value, so it is important to match each product to a specific purpose, such as covering next year’s expenses versus funding later years of retirement.
| Product or Service Name | Provider example | Key features for seniors | Cost estimation or fee indication |
|---|---|---|---|
| Non redeemable 3 to 5 year GIC | Major Canadian banks such as RBC or TD | Principal guaranteed, fixed interest rate, CDIC coverage if eligible | Typically no direct fee; interest rate varies by term and bank |
| Government of Canada bond fund | Mutual fund or ETF providers such as BMO | Diversified holdings of federal and provincial bonds, regular income | Fund management fee applies; expense ratios often under 1 percent |
| Canadian aggregate bond ETF | iShares Core Canadian Universe Bond ETF | Broad mix of Canadian government and corporate bonds, trades on TSX | Management expense ratio generally under 0 point 3 percent |
| Canadian dividend focused equity ETF | Vanguard or similar ETF providers | Portfolio of large Canadian companies paying dividends, growth potential | Management expense ratio often in the 0 point 2 to 0 point 4 percent range |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
Safe investments for seniors and portfolio mix
Safe investments for seniors work best when they are combined thoughtfully rather than chosen in isolation. Many Canadians use a bucket style approach. One bucket holds one to three years of expected spending in cash, high interest savings, and short term GICs. A second bucket holds medium term money in bond funds and laddered GICs. A third bucket holds longer term growth investments such as diversified stock funds. As you spend from the safe bucket, you gradually refill it from the more growth oriented parts of the portfolio during favourable market periods.
At age 60, it is also important to consider taxes and account types. Money in RRSPs will eventually need to be converted to a RRIF, which requires minimum withdrawals that are taxable as income. TFSAs allow tax free growth and withdrawals, which can be useful for flexibility and for managing taxable income in retirement. Non registered accounts may generate interest, dividends, and capital gains, each taxed differently in Canada. The type of investment you place in each account can affect how long your savings last after tax.
Finally, risk is not only about market fluctuations. There is also the risk of inflation eroding purchasing power and the risk of withdrawing too much too quickly. Keeping everything in very safe but low yielding products can feel comfortable, yet may fail to keep up with rising living costs over a long retirement. Balancing safe investments for retirees with a measured amount of growth assets can help protect both current income and future buying power. Many people at 60 find it helpful to review these questions regularly and, when needed, to discuss their situation with a qualified financial professional who understands Canadian tax and retirement rules.
