Older investors are very conservative in their investments. These people are pessimistic to the uncertain economic outlook. They tend to be defensive knowing that their money can run out along with the shortening life expectancy.
The most favorable investments for the elderly are those that pertain to allocated pension with a reasonable exposure to shares of both local and international companies. It is not advisable to invest in securities that require a high level of capital at this point in time.
Allocated pensions are less risky so the elderly need not worry about suffering a sudden setback. However, allocated pensions produce lower annual income so an increased dependence in pension is expected.