Retirees Face Costly Trade-off Between Safety and Returns as Longevity Increases
A new Raiffeisen pension survey shows most seniors keep stable, low-risk portfolios, even though longer retirements make higher returns attractive.
According to the latest Raiffeisen pension barometer, a majority of retirees continue to hold financial assets, but most cling to stability-focused strategies rather than tailoring portfolios to a 25-plus-year retirement horizon. While 60% of seniors still buy securities, about 70% keep the same allocation they used before leaving the workforce, and only 49% of pension lump-sum funds are actively invested. One-third of those funds sit in low-interest savings accounts, reflecting a strong preference for safety.
The analysis highlights that excessive cash exposure can erode real wealth through inflation and rising health expenses. Experts suggest a balanced “three-pot” approach—liquidity, medium-term holdings, and long-term growth—to preserve purchasing power. Inheritance events also prompt many retirees to reassess their asset mix, with 37% increasing equity exposure after receiving an inheritance.
