Retirement – can you be sure your money will last?

Many people are concerned about running out of money once they are in retirement. How can you be sure your money will last?


A sustainable, well-structured retirement income strategy is desirable for any retiree. One simple, yet effective approach worth adopting to plan your retirement income is the bucket strategy. By clearly segmenting your retirement assets into certain categories you can link portions or buckets of money directly to goals and objectives.

One of the most common bucket strategies is time segmentation, which involves assigning each bucket to a defined time period in retirement, based upon the retiree’s risk tolerance and time horizon. It anticipates that the allocation will shift over time to traditionally more conservative asset classes.

For example with three buckets :

BUCKET ONE would contain cash and cash equivalents, to satisfy current spending up to the first five years of retirement.

BUCKET TWO would cover spending needs in years 6 to 15 of retirement and would contain mostly fixed income investments, usually more volatile than cash.

BUCKET THREE would meet the expenses 15+ years into retirement and contain mostly equities, traditionally a more volatile and risky asset which would benefit from a longer term time horizon.

Buckets need to be kept fluid and will need to be redistributed to lower risk assets as time goes by.

Don’t take chances when it involves your Retirement. Our Financial Advisers can give you the very best professional advice. Call Logic Wealth Planning on 0808 1234 321 where we can arrange your initial appointment free of charge.