Demographics

I don't totally agree
Good choice of equities can counter performance issues.

My option would be to buy stocks of companies that raise their dividends regularly, over time this can greatly enhance returns.

FT.com / Markets / The long view - Long View: Why baby boomers will put their faith in bonds:

"Confidence in stocks is likely to have been shaken, as the realisation takes hold that bonds have beaten stocks over four decades.

Add to this the weight of demographics. Those who started saving in 1969 were in the early years of the baby boom generation. They have only a few years left to retirement, and suddenly have far less wealth set aside for it than they had thought. That will mean saving more, and it is likely that a big chunk of that money will go to bonds rather than stocks."