I'm not sure I'd agree 100%, Bj, in that I'd treat my mortgage-free home as just that, a home to live in and not an investment. Aside from that, I've never favoured the increased allocation to bonds advocated by many (most?) advisers. Retired folk still have to hedge their income against rising costs - rates, power, insurances etc - nothing seems to get cheaper except maybe electronics which don't figure much in a retiree's spending! - and equities have long been the best way to do this, at least in NZ.