The three-bucket retirement strategy: spend, reserve and grow

What happens if you retire and the share market falls just as you start drawing on your savings? On the Australian Retirement Podcast, Owen Rask and Tahli Cavagnino unpack the three-bucket retirement strategy: a way to think about spending now, keeping a reserve and investing for a longer retirement. They begin with the shift from earning a salary to relying on a portfolio. Tahli explains sequencing risk: selling investments to meet living costs during a market downturn can make a recovery harder. The first bucket covers near-term spending needs, often with a cash buffer. But holding too much in cash can bring its own risks, including inflation and missed long-term growth. The second bucket is the defensive reserve, where bonds and other income-focused assets may help support the cash bucket. The third is for longer-term growth, commonly including shares. Owen and Tahli work through a hypothetical couple’s retirement spending to show how the buckets interact, when they might be topped up and why a poor market year requires a different response from a strong one. This is not a set-and-forget formula. The hosts discuss how to review and rebalance, what happens if bonds and shares fall together, and the trade-offs for people managing their own super. They also explain why a bucket strategy may be possible within an industry fund without opening multiple accounts, although the options and effort required vary. If you are approaching retirement or already drawing an income, this conversation offers a clearer framework for the questions to take to your super fund or financial adviser — and a reminder that peace of mind matters alongside the numbers. Episode resources – ⁠Accounts Leaderboard: Compare the latest Australian savings account interest rates⁠ – ⁠Ask a question (select the Retirement podcast)⁠ Show partner resources – ⁠Join Pearler using the code "RASKSWITCH" and get $32 of Pearler Credit⁠ – ⁠Whatever comes next for your business, power it with Stripe⁠ Rask resources – ⁠All services⁠ – ⁠Financial Planning⁠ – ⁠Invest with us⁠ – ⁠Access Show Notes⁠ – ⁠Ask a question⁠ – ⁠We love feedback!⁠ Follow us on social media – Instagram: ⁠@rask.invest⁠ – TikTok: ⁠@rask.invest⁠ Disclaimer The information in this episode is provided by The Rask Group Pty Ltd and contains general financial product advice only. It does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you and consider seeking personal advice from a licensed financial adviser. You can read our Financial Services Guide at ⁠www.rask.com.au/fsg⁠. If a financial product is mentioned, consider the relevant PDS and TMD, where applicable, before making any financial decision. Past performance is not a reliable indicator of future performance. Returns are not guaranteed and capital may be at risk. The Rask Group Pty Ltd is a Corporate Authorised Representative No. 1280930 of Rask Licensing Pty Ltd, AFSL 563 907. Learn more about your ad choices. Visit megaphone.fm/adchoices