It is widely accepted that an individual's risk appetite falls with age.

This makes a lot of sense. After all, someone in their 20s has a lot more time to recoup their losses compared to someone in their 60s who is nearing retirement and reliant on their nest egg to fund their future lifestyle.

Because capital preservation becomes increasingly important as we grow older, investors need to ensure they select ASX 200 shares that are consistent with their risk appetite and investing timeframe.

With that in mind, here are two buy-rated ASX 200 shares that could be great additions to a well-balanced retirement portfolio:

When building a retirement portfolio, you will want to own the highest quality companies that money can buy.

CSL is arguably the crème de la crème on the Australian share market. It is one of the world's leading biotechnology companies. Its three businesses, CSL Behring, CSL Seqirus and CSL Vifor, provide lifesaving products to patients in more than 100 countries and employ 32,000 people.

It also always has the future in mind. Each year, CSL reinvests ~11%-12% of its sales back into research and development (R&D) activities. This ensures that it has an R&D pipeline containing some potentially lucrative and lifesaving therapies and vaccines.

On Monday, Macquarie retained its outperform rating and lifted its price target on the company's shares to $330.00. This implies potential upside of almost 18% for investors. Macquarie also suggested that there's scope for them to rise beyond $500 within three years.

Another ASX 200 retirement share that could be a top option for investors is Australia's largest telco, Telstra.

It is also a high quality business and ticks a lot of boxes for a retirement portfolio. These include having defensive qualities and a positive growth outlook. In addition, the company's shares offer investors a great dividend yield.

For example, the team at Goldman Sachs is currently forecasting fully franked dividends per share of 18 cents in FY 2024, 19 cents in FY 2025, and 20 cents in FY 2026. Based on the current Telstra share price of $3.81, this will mean very attractive yields of 4.7%, 5%, and 5.25%, respectively.

Another positive is that Goldman believes this ASX 200 retirement share could rise strongly from current levels. Its analysts currently have a buy rating and $4.55 price target on them.

This implies potential upside of almost 20% for investors over the next 12 months. And if you include dividends, you're looking at a total potential return of approximately 25%.