Bucket two : three to five years of expenses, held in more conservative investments like bonds, to refill bucket one as it’s drawn down. Bucket one : one to two years of living expenses, held in cash or term deposits, for immediate spending needs. Experiencing poor investment returns in the first few years of retirement, right when you’re also withdrawing money, can permanently damage how long your portfolio lasts, even if markets recover strongly later on. Aim for at least three to six months of expenses held somewhere secure and easily accessible, so an unexpected cost doesn’t force you into an ill-timed withdrawal from your main retirement savings. Revisit your plan regularly, not just oncePerhaps the most important habit of all is treating your retirement income strategy as something to review periodically, rather than a decision made once at retirement and left untouched for decades.