Build a nest egg. Withdraw 4 percent.  Hope it lasts.

Today, it’s more nuanced than that.

Retirement isn’t a single number. It’s a structure. And one of the simplest ways to think about it is in three buckets.

1. Income Security. Your Foundation

This is the base layer. The income you can rely on.

• CPP
• OAS
• Company pensions
• Annuities
• Conservative, dependable investments

This bucket answers one core question. “If markets fluctuate, are my essential expenses still covered?”

Housing, groceries, utilities, insurance, basic living costs. Those should feel steady and predictable.

When this bucket is solid, everything else becomes less stressful.

2. Lifestyle & Flexibility. The Freedom Bucket

This is where retirement starts to feel personal.

• Travel.
• Season tickets.
• Helping adult children.
• Renovations.
• That hobby you finally have time for.

This bucket is typically funded through investment portfolios that can tolerate some growth and some movement. It is designed to give you flexibility, not anxiety.

The key here isn’t just growth. It’s having a strategy for how and when to draw from it in a tax-efficient way.

This is often where thoughtful planning makes the biggest difference.

3. Legacy & Impact. The Intentional Bucket

This one is often overlooked.

• Gifting to children or grandchildren
• Charitable giving
• Leaving a meaningful estate
• Supporting a cause you care about

Some clients want to spend confidently. Others want to preserve intentionally. Most want a balance of both.

Planning this bucket properly can involve insurance strategies, estate coordination, beneficiary designations, and tax planning.

It’s about ensuring your money moves where you want it to, in the most efficient way possible.

Why This Framework Matters

When everything is blended into one big number, retirement can feel overwhelming.

When it’s organized into purpose-driven buckets, clarity replaces anxiety.



You can see:

• What is guaranteed
• What is flexible
• What is legacy

And you can make decisions from a position of confidence rather than reaction.

Retirement planning isn’t just about getting to a date on the calendar.

It’s about structuring your resources to support the life you want to live, and the impact you want to have.

Source: Moneysense.ca