5 of the Safest Investments for Retirees

When you're retired, your investing goals usually shift. It's less about high returns and more about steady income, protection from inflation, and peace of mind.

The good news is, you don't have to sacrifice growth entirely to protect your nest egg. Thanks to high interest rates, right now you can still get great guaranteed returns from several low-risk investments.

Here are five of the safest investments for retirees that can still earn solid returns -- without the stress.

1. Certificates of deposit (CDs)

The first classic, low-risk option is buying CDs. You start by depositing money for a locked-in period (like 1 year, 3 years, or 5 years). Then in return, you earn a guaranteed interest rate for the duration of the CD's term.

CD accounts are FDIC insured (up to $250,000 per account holder, per bank). So your money is federally protected even if the whole bank fails.

Right now some of the best CD rates are up to 4.25% APY, depending on the term.

Here's a quick example of what you could earn based on a $50,000 investment and different CD terms:

If you're looking for a safe way to preserve capital and still earn interest, CDs are hard to beat.

2. Fixed annuities with no commissions

Not all annuities are created equal. But fixed deferred annuities (with no commissions and a death benefit) can be a smart, safe option for retirees.

They work a lot like CDs. You invest a lump sum, lock in a fixed interest rate for a set number of years (typically three to seven), and then collect the earnings when it matures.

Some fixed annuities offer around 5%-6% annually right now. Not bad for folks who want a predictable return and a safe income stream, but don't need immediate access to the cash.

3. Dividend stock ETFs

Want to stay in the market without the rollercoaster ride? Dividend stock ETFs might be your answer. You can invest directly within your brokerage account.

Dividend funds invest in a diversified group of companies that pay regular dividends to shareholders. Think big blue-chip names like Coca-Cola, Johnson & Johnson, or Procter & Gamble.

Some popular dividend ETFs yield around 3% to 4%, which can help supplement retirement income without touching your principal.

Just remember, unlike CDs or annuities, returns aren't guaranteed. The market can still go up and down. But over time, dividend-paying companies tend to be stable, profitable, and recession-resistant.

4. Bond funds

Bond funds work by pooling investor money to buy a mix of bonds, like U.S. Treasuries, municipal bonds, and corporate debt. These bonds pay interest over time, and the fund passes that income along to you.

Many retirees stick with short- or intermediate-term bond funds, because these are less sensitive to interest rate swings and better for stability.

5. High-yield savings accounts (HYSAs)

Let's not forget about god ol' fashioned high-yield savings accounts.

Many top online banks still pay 4.00% APY or more for HYSAs. And your money stays completely liquid. Plus, they're FDIC insured, and most accounts have no monthly fees or balance minimums.

If you're still storing money in a checking account earning pennies in interest, it's time to open an HYSA. Check out the best HYSA accounts in August 2025, offering up to 4.30% APY.

Keep it safe, but not idle

Retirees don't need to chase risky returns. And parking cash in a checking account earning near-zero interest isn't the answer either.

You can still earn 4.00% APY or more with low- or no-risk products. It just comes down to picking the right option for your goals.