If they are retired and not financially literate, it would be best not to be too adventurous with their money. Firstly, ensure that they have a decent amount in CPF to draw on. CPF life is a very good annuity and it will form the bedrock of their retirement. Longevity risk is mitigated as it pays for life. If CPF life has been maximized, a private annuity is another good option to increase their retirement income. Next, you can boost their income by looking at low-risk instruments such as bonds, which you mentioned. Bonds (like SSB) or even investment-grade bond funds do pay a decent dividend and can be used to supplement their income. At this point, the income sources mentioned above should be able to provide for basic expenses. Keep some liquidity in the form of cash, but you can put a portion in high interest savings account such as CIMB, or in FDs, or very short term endowments (3 years) which can help to squeeze the most of of their money. A small portion can be directed to defensive equities, but you will need to look for good timing to enter. Several shares listed on SGX have paid decent dividends over the years and are noted for raising their dividends over time, this helps to mitigate inflation. With the right mixture of asset classes, you can achieve an inflation hedge, low volatility portfolio, which will be stable even during periods of drawdown. On the risk management side, ensure they have an integrated shield plan, and long term care coverage, so that any emergency won't wipe out their savings or force you to liquidate investments to pay the bills.