Retirement investing isn’t about chasing growth—it’s about protecting your nest egg while generating reliable income. Here are five assets that can help you achieve both in 2026.
Retirement changes everything. The aggressive growth strategies of your working years must now give way to a focus on preservation and income. One wrong move can jeopardize decades of careful planning. That’s why understanding the right assets for this phase is critical.
Here are five assets that can help retirees balance income and security in 2026, based on current market trends and historical performance.
1. Money Market Funds: The Comeback Asset
Money market funds have made a dramatic comeback. After years of near-zero interest rates, rising yields have made them a favorite among retirees. As of December 2025, these funds hold a record $8 trillion, up from $4.6 trillion in 2020, according to Bloomberg.
With yields reaching 4.6%, these funds offer liquidity and safety, making them ideal for short-term cash needs or as a buffer in volatile markets.
2. Treasury Inflation-Protected Securities (TIPS): The Inflation Shield
Inflation is the silent killer of retirement savings. Traditional bonds may offer safety, but their fixed payouts lose value as prices rise. That’s where TIPS come in. These government-backed securities adjust their principal with inflation, ensuring your purchasing power remains intact.
For example, a $1,000 investment in a 10-year TIPS with a 1.88% yield in a 2% inflation year would apply that yield to an adjusted $1,020 principal, preserving real returns. TreasuryDirect provides detailed guidance on how these work.
3. Multi-Year Guaranteed Annuities (MYGAs): The Income Bridge
Annuities often get a bad rap, but MYGAs can be a strategic tool for retirees. These fixed-rate annuities offer guaranteed returns for a set period (typically 3-10 years) and defer taxes until withdrawal.
They’re particularly useful for bridging income gaps, such as the years between retirement and claiming Social Security. However, they require locking up funds, so they’re best for money you won’t need for emergencies. Annuity.org explains their role in retirement planning.
4. Covered Call Funds: Income with Market Exposure
For retirees who still want market exposure but prioritize income, covered call funds offer a compelling option. These funds sell call options on their holdings, generating steady income while capping upside potential.
The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) currently yields 9.4%, showcasing the income potential of this strategy. While not for everyone, they can be a smart addition for income-focused portfolios.
5. Real Estate Investment Trusts (REITs): Property Without the Hassle
Real estate is a classic retirement asset, but managing properties can be a headache. REITs solve this by offering exposure to real estate markets without the hassle of being a landlord.
These publicly traded funds provide liquidity, inflation protection, and steady dividends. Some REITs specialize in niche sectors like data centers or warehouses, offering diversification beyond residential or commercial properties.
Because they trade like stocks, their prices fluctuate, but their long-term income potential makes them a strong candidate for retirees who can tolerate moderate volatility.
The Bottom Line: Protect and Generate
Retirement investing is about protection first, income second. The assets above offer varying degrees of both, allowing retirees to tailor their portfolios to their risk tolerance and income needs.
By combining these tools, retirees can create a resilient portfolio that withstands market fluctuations while providing the cash flow needed to enjoy their golden years.
For more insights on smart retirement strategies, explore our retirement planning section—where we deliver the fastest, most authoritative analysis to help you make informed decisions.
