Former Federal Reserve member Dennis Lockhart told CNBC Wednesday that even though older investors are meant to reduce risk, he's still opting for equities.

"I'm still very much in the equity markets. I have been all my life and it paid off.

"Even though I'm getting on in age and it's typical to shift to fixed income or something, as long as my pension checks arrive I'm going to stay in equities," the 70-year-old told Squawk Box Europe.

Lockhart added that while stocks go up and down; "in the long run they work out."

"Hopefully, one day my grandchildren will thank me," the former Atlanta Fed president said.

On current Fed policy Lockhart said two more rate hikes in 2017 is a reasonable assumption at this point.

Lockhart added that once the top of the range of federal funds rates reached 150 basis points, the US central bank could start to trim its balance sheet.