Retirement planning has always come with a big question: how much do I really need? For decades, the default answer has been a fixed formula – save a certain percentage, assume spending rises with inflation each year, and target a seven-figure number to be “safe.”

But more recent research challenges conventional wisdom. Looking at millions of real retirees, analysts found that most people actually spend less as they age. The result: many savers may not need as much as they think. Spending tends to peak in the early years of retirement – when travel, dining out, and hobbies are at their highest – then gradually taper off as lifestyles slow. Healthcare costs rise later, but overall expenses usually drop enough to offset them.

This shift matters because it reframes retirement from a rigid savings race into a personalized journey. Instead of assuming every retiree needs the same massive nest egg, the real question becomes: what mix of resources will support the way you want to live?

The Pace of Retirement Spending

Your retirement expenses won’t stay the same year after year. As your energy, lifestyle, and health evolve, so will your wants and needs. Most retirees experience three natural stages, each with its own rhythm:

  • Full Speed Ahead: In the first years of retirement, you may feel energized to travel, take on hobbies, or enjoy more leisure activities. Expenses can run higher during this stage, sometimes even outpacing inflation.

  • Steady Cruise: By your 70s, routines settle in. Travel often slows, hobbies shift, and household expenses level off. Spending grows more gradually – or may even hold steady.
  • Gentle Coast: As you age through your 80s and beyond, daily spending often declines further, while healthcare and support services become more important.

Understanding these stages is only the first step. The next is creating a plan that ensures you’ll have the right resources at the right time, and that’s exactly what a bucket strategy is designed to do.

Why “Buckets” Still Work – But Differently

The “bucket strategy” is a simple, popular way to organize retirement assets and feel confident that your needs will be covered:

  • Short-term bucket: Ready cash for things like monthly bills, groceries, and travel in the first few years of retirement.
  • Intermediate bucket: Money you’ll rely on a little later, perhaps in the next decade or so. It’s there to refill your short-term funds when you need them.
  • Long-term bucket: Resources you’re setting aside for the later years of retirement. This bucket helps cover future needs, like healthcare, so you can feel secure no matter what stage you’re in.

Research supports this approach – but with a twist. If spending naturally decreases over time, it may mean less strain on the long-term bucket than previously assumed. This means your buckets aren’t rigid rules, but flexible tools that fit your lifestyle, health, and family goals.

Personalization Beats Rules of Thumb

At Chartway, we know no two retirements look alike. That’s why we offer members educational resources and financial coaching designed around your needs. From understanding how Social Security fits into your plan to aligning savings with lifestyle goals, the right strategy is personal.

  • Evaluate your unique spending path. Your priorities and your plan are unique to you. What feels like “enough” will depend on your lifestyle, your health, and even where you live. Multiple factors will determine how much money you’ll need to fund the life you want.
  • Coordinate income sources. Retirement income can come from several places, including Social Security, workplace accounts, personal savings, or even part-time work. Looking at how these pieces will fit together can help you create steady cash flow instead of relying too heavily on any one source.
  • Plan for healthcare. As you age, health-related expenses often become one of the biggest line items in your budget. Factoring in Medicare, supplemental coverage, and out-of-pocket costs now means fewer surprises later.

A “one-size-fits-all” answer won’t capture these variables because there isn’t a single number that guarantees retirement success. Bespoke advice ensures you’re not over-saving, under-spending, or missing opportunities to make your money last.

What Chartway Members Have Access To

When you’re ready to build a retirement plan around your life, Chartway offers multiple ways to get started:

Bringing It All Together

Retirement planning isn’t just about hitting a target balance – it’s about creating a clear, flexible plan that adapts to how your needs evolve. The reality is that many retirees don’t spend as much in their later years as traditional models assume. That’s good news: you may not need as much as you thought to retire comfortably.

But knowing your number is only the starting point. The real work is in designing a plan that aligns your resources, lifestyle, and values. That means deciding when to draw Social Security, how to balance different buckets of savings, and how to prepare for healthcare costs without cutting into the activities that make retirement rewarding.

At Chartway, our mission is to help you retire with confidence by offering the personalized advice, flexible accounts, and ongoing education you need to turn plans into reality. Because the best retirement plan isn’t about someone else’s formula – it’s about yours.