INCOME TAX10 Sept 2026
How to invest your retirement corpus? 3-bucket strategy explained for retirees seeking regular income
Retirement planning doesn't stop at building a corpus. For retirees, a three-bucket strategy splits savings by when the money is needed — one for daily and medical costs, one for medium-term goals, and one for long-term wealth. Healthcare inflation runs near 9–10%, so keep a bigger buffer. Start by estimating expenses. This helps cut the impact of market ups and downs.
Key Statutory Highlights
- A retirement bucket strategy divides your corpus into three parts based on when you will need the money.
- The first bucket covers regular essential costs like household and healthcare expenses, so liquidity matters there.
- Healthcare costs have been rising at around 9–10%, so retirees may need a larger buffer for medical expenses.
Actionable Advice for Taxpayers / Founders:Work out your essential and lifestyle expenses and when each will be needed, then discuss a three-bucket allocation suited to your corpus, income and risk profile with your adviser.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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