Wealth of Advice, Swale House, Mandale Business Park, Durham, DH1 1TH
In this episode of the Retire Well podcast, Matthew and Joe explore the concept of bucketing—a strategy for structuring retirement income to manage investment risk and psychological comfort. Whether you're newly retired or planning ahead, this episode offers practical insights into how to balance short-term security with long-term growth.
Bucketing divides your retirement savings into three time-based categories:
Joe explains the psychological benefit:
“I almost see bucketing strategy as trying to remove some of those inefficient decisions”
The strategy helps mitigate sequencing risk—the danger of withdrawing funds during market downturns. By keeping short-term needs in low-risk assets, retirees can avoid selling investments at a loss.
While bucketing is effective, it’s not one-size-fits-all. Some retirees may prefer simpler strategies, such as:
The key is aligning your plan with your risk tolerance, income needs, and psychological comfort.
Bucketing is a flexible and psychologically supportive way to manage retirement income. It helps:
Whether you adopt a formal bucketing strategy or a simplified version, the goal is the same: to create a retirement plan that’s resilient, adaptable, and tailored to your life.
If you want a better view of what your future could be, we'll have a chat and work out if we make a good fit for you and your financial picture.
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