If you are venturing into the retirement game late, i.e. after 45 years, majority of regular savings should be invested in government securities and exposure to equity should be limited. If you start reasonably early (in your 30s) or you expect to have your substantial company pension waiting for you, then you can take up higher investment risks that will grant you the opportunity to earn higher returns. Along with right asset allocation it is also important to diversify your portfolio. As rightly said, “Do not put all of your eggs in one basket.”