How to choose the best investment for a senior citizen

When you retire, managing your assets becomes crucial. Finding the best investment for senior citizens means reconciling profitability, security and inheritance. This guide details the options available and the potential returns to help senior citizens build an investment strategy tailored to their situation. Choosing the right investments also means thinking about the balance between traditional solutions and innovative opportunities that can diversify assets.

When investors reach retirement age, their investment priorities change to reflect the realities of this new stage of life. Security, regular income and inheritance become the cornerstones of an appropriate investment strategy.

Security and capital preservation

At retirement, the main objective is often to protect the capital accumulated over the years. Senior citizens prefer investments that minimise the risk of loss.

Generating additional income

With retirement incomes falling, it is essential to generate regular cash flows to maintain a comfortable standard of living. Some investments offer returns in the form of passive income.

Anticipate the transfer of assets

Optimising inheritance tax is a major concern. Certain products, such as life insurance, make it easier to pass on assets while offering tax advantages.
 

As a senior citizen, choosing where to invest your capital depends on a number of factors: financial objectives, risk tolerance, investment horizon and personal situation. Here is an overview of the investment solutions commonly chosen by senior investors, including their advantages and disadvantages.

Bank passbooks and Euro funds

These regulated passbooks offer total security thanks to a capital guarantee and immediate liquidity. However, their yield remains low (currently around 3%), making them a suitable solution for cash flow needs or precautionary funds.

Euro funds offer full capital protection and modest returns (generally between 1.5% and 2.5%). Placed in a tax-advantaged wrapper such as life insurance, they combine security and tax optimisation, particularly for inheritance purposes.

Real estate: a safe haven

Investing in rental property generates regular income from rents, while taking advantage of tax breaks such as the Pinel scheme and the LMNP (Loueur Meublé Non Professionnel) scheme. However, this type of investment requires active management and is exposed to fluctuations in the property market.

SCPIs allow you to benefit from the advantages of property without the management constraints. With average yields of between 4% and 6% a year, they are an attractive option for investors looking for passive income.

Private equity and investment funds

Private Equity, once the preserve of institutional investors, is becoming more accessible thanks to solutions such as those offered by Eurazeo Wealth Solutions. With rigorously selected funds, private investors can target high-growth areas such as:

• Technology : Digital and technological innovations offer opportunities for rapid growth.
• Healthcare: The rise of biotechnology and personalised healthcare services makes this a resilient and promising sector.
• Renewable energies: The energy transition and environmental commitments are creating growing demand for sustainable solutions.
• Infrastructure : The development of essential infrastructure (transport, telecommunications) represents a stable and strategic opportunity to diversify our portfolio.

This type of investment is particularly suited to investors looking to boost their portfolio over the long term, while being aware of the risks associated with illiquidity and capital loss.

Bonds

Bonds are a stable solution for cautious investors, offering fixed income in the form of regular coupons. They are particularly suited to portfolios with a low risk tolerance.

ETFs: Simple and affordable

ETFs (Exchange Traded Funds) offer low-cost diversification, ideal for senior citizens wishing to access the stock markets without in-depth technical expertise.

Before choosing an investment, it's essential to understand the advantages and limitations of each option so that you can make an informed decision that's tailored to your objectives. Here's a summary of the main investments for seniors.

To develop an effective investment strategy as a senior citizen, it's essential to take into account your current financial needs, your risk tolerance and the length of your plans. At this stage of your life, your priorities may be different: you may want to supplement your income, secure your savings or pass on your assets.

Prioritise the security of your capital

As you get older, preserving your savings becomes paramount. Secure financial products such as euro-denominated life insurance, guaranteed-capital SCPIs and regulated savings accounts are the best choice. These solutions offer stability and peace of mind, while generating reasonable returns.

Maintain appropriate diversification

Although security is important, balanced diversification remains essential to limit risk. It is possible to combine safe investments with more dynamic investments to take advantage of growth opportunities while protecting part of your capital against market fluctuations.

Think about liquidity

At this stage in your life, the accessibility of your funds is crucial. You need to make sure that part of your investment remains readily available to deal with unforeseen circumstances or finance personal projects.

Optimising your retirement income

To top up your income, you can turn to investments that generate regular income, such as yielding SCPIs, bonds or certain shares with stable dividends. These solutions can provide a financial top-up while preserving your capital.

Thinking about succession

If one of your objectives is to pass on your assets, life insurance remains a particularly attractive option. It allows you to benefit from advantageous taxation in the event of inheritance and to organise the distribution of your assets according to your wishes.

Tax exemption options

Reducing your tax bill is always worthwhile, even in retirement. Schemes such as the PEA, life insurance and certain tax shelters for property can help you maximise returns while limiting the tax burden.

Adjust your strategy regularly

Your situation changes over time, as do the financial markets. Annual monitoring of your portfolio is essential to adjust your choices according to your needs and changing economic conditions.

Eurazeo stands out for its expert approach to private equity investment, combining in-depth knowledge of the financial markets with rigorous portfolio management. By identifying sectors with high growth potential, such as innovative technologies, healthcare or the energy transition, Eurazeo Wealth Solutions offers diversified investment solutions starting at €10,000 that meet the needs of individual investors looking for security and profitability. For senior citizens, the aim is to guarantee stable returns and ensure the sustainability of their assets, while making it easier to pass them on to future generations.

Investing as a senior citizen involves risks, particularly because of the shorter time horizon and the need to protect your capital, so it's advisable to be accompanied by financial experts to help you draw up a secure investment plan.
 

For a senior investor, risk management is essential. The main risk is capital loss, especially in non-guaranteed investments. Liquidity risk is also a determining factor, as some investments lock in funds over several years. In particular, market volatility can affect returns, which is crucial if the investor is dependent on this income. Finally, the tax and inheritance framework needs to be carefully assessed to avoid unforeseen charges. A well thought-out strategy must reconcile these factors while adapting to the investor's personal objectives.