The husband and wife were disturbed by a noise in the house on Newry’s Newtown Road, before their bedroom door was forced open and two men entered.
One of them was armed an iron bar and the other was carrying a torch.
They demanded money from the couple before leaving with a handbag containing cash.
Police say one of the intruders described as being about 25 to 30 years old, about 5ft 8ins tall, slim, with fair hair cut short.
He spoke with a Newry accent.
The second man is said to be slightly smaller and of heavier build, with fair hair and a fair complexion.
Detectives at Ardmore CID in Newry have appealed for anyone with information about the robbery to contact them on 101.