In the case of retirees, money will not be on their way when they are needed. So if you take some risk with your retirement savings by investing the amount then you can take the interest and dividends as income. Individual Retirement Accounts (IRAs) are a popular choice for investing in retirement . You have to choose a certain mix of investments for your account that you are willing to take, because it is very difficult to achieve appreciation of your investment. The rate of return you want to achieve goes up, so does the risk. The main categories of investing in retirement are stocks, bonds, cash and cash equivalents.