How Much Equity Exposure Is Critical for Retirees? The conventional wisdom on retirement investing has shifted significantly over the past few decades.
For many years, retirees were advised to reduce their equity exposure and focus on preserving capital.
However, modern thinking among financial advisors suggests that equities should be a meaningful part of every retiree's portfolio – typically between 40% and 80% – to generate income and mitigate inflation and longevity risk.