I had a discussion with one of my clients last week that prompted me to want to say this:
Your retirement investments should ALWAYS have stocks in them. You figure out how much by subtracting your age from 100.
So for me at 25, I should have around 75% of my retirement in stocks.
If you are risk averse, you can still invest in stocks, you just need to pick less risky stocks, like Large Cap Equities and Blue Chips or Index Funds.
I, personally, am not totally risk averse so I am heavily invested in Growth Funds, which are riskier investments that can give big returns if they are invested properly by your investment advisor. And mine obviously is because it continues to grow. (Knock wood.)
However, if you are planning to grow retirement based exclusively on a portfolio built on bonds and cash you are in for a rude awakening. Not only will you not be able to keep up with inflation, but you may even lose money as the bond market starts to decline and stocks start to pick up again.
So take a look at your retirement, make sure you are adequately invested in stocks and then pick your stocks based on your risk tolerance. Your investment advisor will be able to help you with that. All major retirement programs come with an investment advisor, so give him or her a call and get some help that is included with your 401(k) 403(b) or IRA.