Retirement Asset Allocation: How Should You Divide Your Investments? [2026 Guide for UK Expats]

How should you divide your investments for retirement when you live and work overseas?

This 2026 guide explains retirement asset allocation for UK expats, including equities, bonds, cash, property, pensions, currency exposure, diversification, tax considerations and how your strategy should change as retirement approaches.

Key Takeaways

• There is no one-size-fits-all retirement asset allocation. Your ideal mix of equities, bonds, cash and other assets depends on your goals, time horizon, risk tolerance and capacity for loss.

• Your retirement time horizon matters. Money needed soon generally requires greater stability, while money needed decades later may have more scope for long-term growth.

• Consider your whole financial picture. Include pensions, investments, cash, property, State Pension and other sources of retirement income when assessing your overall allocation.

• UK expats need to consider currency and tax. Where you live, where you plan to retire and which currencies you will spend can all influence your investment strategy.

• Asset allocation and bucket strategies can work together. Asset allocation focuses on how your money is invested, while a bucket strategy focuses on when and why you will need it.

• Review your strategy as your circumstances change. Retirement, relocation, changes in income, pensions or financial goals can all warrant a review of your retirement asset allocation.

What is Retirement Asset Allocation?

Retirement asset allocation is the process of dividing your retirement investments between different asset classes according to your objectives, time horizon, capacity for loss and attitude to investment risk.

The main asset classes typically include:

• Equities: shares in companies

• Bonds: loans to governments or companies

• Cash and cash equivalents: savings accounts and similar lower-risk holdings

• Property: either directly owned property or property-related investments

• Other assets: which could include infrastructure, commodities or other investments depending on the portfolio

Each asset class behaves differently.

Equities have historically provided significant long-term growth potential, but their prices can fall sharply. Bonds can provide income and diversification, although they can also lose value, particularly when interest rates change or the issuer experiences financial difficulties. Cash is generally more stable in nominal terms but can lose purchasing power to inflation.

The objective is therefore not necessarily to find the asset that will perform best.

Instead, the objective is to combine assets in a way that gives your portfolio an appropriate balance between growth, income, stability, liquidity and risk.

Why Asset Allocation Matters So Much for Retirement

When you are several decades away from retirement, you may have time to recover from periods of poor investment performance.

As retirement approaches, the situation changes.

If a significant market fall occurs shortly before you need to start drawing from your portfolio, you may have less time to wait for markets to recover. This is one reason retirement asset allocation should evolve as your circumstances change.

There is also the question of inflation.

Suppose you want £40,000 a year in retirement. That amount may look comfortable today, but inflation can significantly reduce its purchasing power over a 20- or 30-year retirement.

This means that simply holding large amounts of cash may not provide the long-term protection you need.

For an expat, I would add another layer: currency risk.

If you earn in US dollars, hold a pension in sterling and expect to retire in euros, for example, you have three different financial reference points. The value of your investments in pounds may therefore tell only part of the story.

Your asset allocation needs to reflect the life you expect your money to support.

How Should You Divide Your Retirement Investments?

There is no single asset allocation that will suit every UK expat. The right balance depends on factors such as your age, retirement date, income needs, existing pensions and investments, capacity for loss, tax position, and where you expect to live in retirement.

As a starting point, it can be useful to think about your portfolio in terms of four main asset classes: equities, bonds, cash and property. Each serves a different purpose, and the balance between them should change as your circumstances and retirement objectives evolve.

Example Of A Retirement Asset Allocation

For example, a hypothetical £500,000 retirement portfolio might be divided as follows:

This is only an illustration, not a recommendation. Someone with 20 years until retirement may reasonably have a very different allocation from someone who plans to retire in two years.

The important point is to understand what each part of your portfolio is intended to achieve.

1. Equities: The Engine for Long-Term Growth

Equities represent shares in companies and are generally the main growth component of a long-term investment portfolio. Over extended periods, they offer the potential for capital growth and can help your retirement savings keep pace with inflation.

However, that potential comes with greater short-term volatility. Equity markets can fall significantly, sometimes when you least expect it. Therefore, the question is not simply whether equities offer attractive long-term returns, but whether you can tolerate the temporary losses that come with investing in them.

For example, suppose £300,000 of a £500,000 portfolio is invested in equities and the equity market falls by 25%. Ignoring other movements, that portion would fall by £75,000, reducing the overall portfolio by approximately 15%.

That may be manageable for someone with 20 years before retirement. It could be much more uncomfortable for someone who needs to withdraw a large amount of money next year.

For UK expats, global diversification can also be particularly useful. Rather than concentrating your investments in UK companies simply because you are British, a globally diversified equity portfolio can give you exposure to businesses across different countries, industries and economies.

It is also worth considering your existing exposure. If your salary, property and pension are already heavily concentrated in one country, investing globally may help reduce your overall dependence on that economy.

Key considerations for equities:

• Your investment time horizon

• Your capacity for investment losses

• The level of long-term growth you need

• Your existing exposure to particular countries or industries

• The currencies in which you expect to spend your retirement income

The longer your investment horizon, the more opportunity you generally have to tolerate short-term equity market fluctuations. Nevertheless, equities should still form part of a broader strategy rather than being selected in isolation.

2. Bonds: Stability and Diversification

Bonds can provide an important counterbalance to equities. In simple terms, a bond represents a loan to a government or company, with the investor generally receiving interest and repayment of the principal according to the terms of the bond.

Within a retirement portfolio, bonds can potentially provide income and diversification while reducing reliance on equities for every part of your financial plan. They can also provide a source of capital that can be drawn upon during periods when equity markets are under pressure.

For example, imagine you have £500,000 invested and expect to withdraw £30,000 a year during the early stages of retirement. Having a portion of your portfolio in relatively defensive assets may give you greater flexibility than relying entirely on shares to fund those withdrawals.

However, bonds should not automatically be treated as risk-free. Their value can fall when interest rates change, while corporate bonds also carry the risk that the issuer may experience financial difficulties. The type and quality of bonds therefore matter just as much as the percentage allocated to them.

For expats, currency is another consideration. If you expect to spend your retirement income in pounds, holding some sterling-denominated or appropriately currency-managed defensive assets may make sense. Conversely, if you expect to retire overseas, your future spending currency may be more important than your current nationality.

A sensible approach is to consider what the bond allocation is supposed to do within your wider plan rather than simply choosing a percentage because it is a commonly used rule.

3. Cash: Important, but Don't Let It Dominate Your Portfolio

Cash has a straightforward but valuable role in retirement planning. It provides liquidity and can be used for emergencies, planned expenditure or near-term withdrawals without necessarily requiring you to sell longer-term investments at an inconvenient time.

For example, if you expect to spend £30,000 a year during retirement, you might want to hold some readily accessible funds to cover upcoming expenses. Having this liquidity can reduce the need to sell equities immediately following a market fall.

However, holding too much cash for too long introduces another risk: inflation.

Suppose you hold £100,000 in cash and inflation averages 3% a year. If the cash earns no interest, its purchasing power would fall to approximately £74,000 in today's money after 10 years.

This illustrates why cash can be useful for short-term needs but may be less suitable as the main home for money that you will not need for many years.

For an expat, you should also consider which currency you hold in cash. If you earn in US dollars but expect to spend your retirement in sterling, for example, simply holding a large cash balance in US dollars does not eliminate currency risk.

A useful way to think about cash is therefore: Hold enough for liquidity and short-term needs, but consider whether the rest of your long-term wealth has a better role to play elsewhere.

4. Property: Don't Confuse An Asset With Diversification

Property can be an important part of an expat's overall wealth. You might own a family home in the UK, a property in your current country of residence or one or more properties generating rental income.

However, owning property does not automatically mean that your wealth is diversified.

Consider a hypothetical UK expat with:

• £500,000 home

• £150,000 pension portfolio

• £100,000 investment portfolio

• £50,000 cash

Their total assets are worth £800,000, but 62.5% is concentrated in property. Their investment portfolio might be well diversified internally, yet their overall wealth remains heavily exposed to the property market.

This matters because property is relatively illiquid and can involve costs such as maintenance, insurance, financing, taxes, vacancies and management fees. If the property is overseas, exchange-rate movements and local regulations can add another layer of complexity.

Property can nevertheless play a valuable role in a retirement strategy, particularly where it provides a home or sustainable rental income. The key is to consider it alongside your pensions, investments and other assets rather than treating it as completely separate from your retirement asset allocation.

For example:

This broader view can reveal risks that may not be obvious when looking at individual accounts.

Ultimately, the role of property should be assessed according to what you want it to achieve. A family home, an income-producing rental property and a speculative property investment are three very different assets from a retirement-planning perspective.

The Importance Of Your Retirement Time Horizon

Once you understand how different asset classes can contribute to your retirement portfolio, the next question is when you will need to use the money. This is one of the most important factors in retirement asset allocation because your investment time horizon can influence how much short-term volatility you may be able to tolerate.

In simple terms, your retirement time horizon is the length of time between today and when you expect to start relying on your investments. It does not necessarily end when you retire, either. Retirement could last for 20, 25 or even 30 years, meaning some of your money may remain invested long after you stop working.

Investor A

Sarah Is 40 And Expects To Retire At 65.

She has around 25 years before she expects to need most of her retirement assets. Because she has a relatively long time horizon, she may have greater scope to hold growth assets such as equities, provided that this is appropriate for her risk tolerance and capacity for loss.

If markets fall sharply when Sarah is 45, she still has many years before retirement to potentially benefit from future market recoveries and continued investment growth. This does not remove investment risk, but it gives her more time to manage periods of volatility.

Investor B

David Is 63 And Expects To Retire At 65.

David's situation is different. If he expects to start withdrawing a significant proportion of his portfolio within two years, a large market fall shortly before retirement could have a much greater impact on his plans.

For example, suppose David has a £500,000 investment portfolio and the value falls by 20% shortly before retirement. His portfolio would temporarily fall to approximately £400,000. If he then needs to withdraw £30,000 a year, recovering from that loss could be more difficult because he is taking money from the portfolio while it is worth less.

This is why the sequence of investment returns can become increasingly important as retirement approaches. A poor period of investment performance in the early years of retirement can have a greater impact than the same poor performance much earlier in your working life.

Your Time Horizon Does Not End When You Retire

It is also important not to assume that you should move almost everything into cash or low-risk assets as soon as you retire.

If you retire at 65 and live to 90, your retirement could last another 25 years. Some of your money may therefore have a very long investment horizon.

For example, you might divide your retirement assets according to when you expect to need them:

These are broad planning principles rather than fixed allocation rules. Your actual strategy should reflect your income requirements, other sources of wealth, risk profile and financial objectives.

Risk Tolerance vs Capacity For Loss

Understanding your retirement time horizon is important, but it is only one part of deciding how much investment risk you should take. The next step is to consider how comfortable you are with investment risk and, equally importantly, how much loss you can realistically afford.

These two ideas are closely related, but they are not the same. Someone may be comfortable with market fluctuations but still have limited financial capacity to withstand a significant loss. For retirement planning, considering both can lead to a more appropriate retirement asset allocation.

Risk Tolerance

Risk tolerance describes your emotional and psychological attitude towards investment risk.

For example, imagine that you have £500,000 invested and its value falls to £400,000 during a market downturn. If you understand that markets fluctuate and feel comfortable remaining invested, you may have a relatively high tolerance for risk.

On the other hand, if a significant fall would cause you to panic and sell your investments, you may have a lower risk tolerance.

Neither approach is necessarily right or wrong. The important thing is that your portfolio reflects what you can realistically live with.

A useful way to think about risk tolerance is to ask yourself:

• How would I react if my portfolio fell by 10%?

• What if it fell by 20%?

• Would I be tempted to sell during a market downturn?

• Could I continue with my investment strategy without making an emotional decision?

• How comfortable am I with investment values changing from year to year?

Being honest about these questions matters because an investment strategy only works if you can stick with it through different market conditions.

Capacity For Loss

Capacity for loss is different. It considers the financial consequences of losing money and whether you could still meet your essential objectives after a significant fall in the value of your investments.

For example, two investors could both say they are comfortable taking investment risk. However, one might have a secure defined benefit pension, substantial cash savings and a mortgage-free home, while the other relies almost entirely on their investment portfolio to fund retirement.

Although their emotional attitudes towards risk may be similar, their financial capacity for loss could be very different.

Consider two hypothetical investors:

If both portfolios fell by 20%, each would lose £100,000 in value. However, the financial impact could be considerably greater for Investor B because they have fewer alternative sources of income and capital.

This is why the size of your investment portfolio alone does not determine how much risk you should take.

Why This Matters For UK Expats

For UK expats, assessing capacity for loss can become more complicated because your financial position may span several countries and currencies.

You may have a UK pension, an overseas pension, property abroad, investments in different currencies and future retirement income from several sources. You may also face uncertainty about where you will eventually live.

For example, an expat with a £500,000 pension portfolio may appear financially well positioned. However, if they also have a large overseas mortgage, substantial property costs and plans to retire in a country with a different currency, their actual financial position could be quite different.

It is therefore important to look at your overall financial circumstances, rather than assessing each investment account separately.

A Practical Way To Assess Your Position

Before deciding how much risk to take, consider the following:

Your income: How secure is your current income, and how much guaranteed income will you have in retirement?

Your essential spending: How much do you need each year to maintain your lifestyle?

Your accessible savings: How much cash or other liquid capital could you access if markets fell?

Your pensions: How much of your retirement income will come from State Pension, defined benefit pensions or other guaranteed sources?

Your investment horizon: How long can you leave your investments untouched?

Your liabilities: Do you have mortgages, loans or other significant financial commitments?

Your retirement location: Where do you expect to live, and which currency will you need for your spending?

Your reaction to losses: Would a substantial fall in your portfolio affect your ability to remain invested?

Taken together, these factors can provide a much clearer picture of the level of investment risk that may be appropriate.

Ultimately, the goal is not to eliminate investment risk. Some level of risk may be necessary to achieve long-term growth and protect against inflation. Instead, the objective is to take an appropriate level of risk that you can both afford financially and tolerate emotionally.

That balance can provide a stronger foundation for your wider retirement asset allocation and help you avoid making major investment decisions based purely on fear or short-term market movements.

Retirement Asset Allocation vs Retirement Bucket Strategy

Although retirement asset allocation and a retirement bucket strategy are closely related, they are not the same thing. Understanding the difference can help UK expats build a retirement plan that is easier to manage and better aligned with when they expect to need their money.

In simple terms, asset allocation determines what you invest in, while a bucket strategy focuses on when and why you will use the money.

What Is Retirement Asset Allocation?

Retirement asset allocation is the process of deciding how much of your portfolio should be invested in different asset classes, such as equities, bonds, cash and potentially property or other investments.

For example, a hypothetical £500,000 portfolio might have an allocation of:

• 60% equities = £300,000

• 25% bonds = £125,000

• 10% cash = £50,000

• 5% other assets = £25,000

The purpose is to create an appropriate balance between growth, stability, liquidity and investment risk.

Asset allocation is therefore primarily concerned with the composition of your portfolio.

What Is A Retirement Bucket Strategy?

A retirement bucket strategy takes a different perspective. Instead of starting with asset classes, it starts with the purpose and timing of your spending.

You might divide your retirement wealth into:

2. Near-term bucket: money you expect to need within the next few years.

3. Medium-term bucket: money intended to support spending further into retirement.

4. Long-term bucket: money you may not need for many years and therefore want to keep invested for potential growth.

For example, suppose you have £600,000 available for retirement.

Again, these figures are illustrative rather than recommended allocations.

The bucket strategy therefore focuses on when the money will be needed and what it needs to accomplish.

The Key Difference

The easiest way to understand the distinction is to think of the two approaches as answering different questions:

Neither approach necessarily replaces the other.

In fact, they can work particularly well together.

Combining The Two Approaches

Imagine a UK expat has £600,000 in retirement investments.

They might first use a bucket strategy to determine that:

• £100,000 is needed for near-term spending;

• £200,000 is likely to be needed over the medium term; and

• £300,000 can remain invested for long-term growth.

They could then use asset allocation to decide how each bucket should be invested.

For example:

This demonstrates an important point: the bucket strategy does not tell you exactly which investments to buy. Instead, it helps determine the role of each part of your wealth. Asset allocation can then help determine the appropriate mix of investments within those roles.

Which Strategy Is Better?

There is no universal answer because they solve slightly different problems.

A traditional asset allocation approach can provide a clear framework for managing investment risk and maintaining diversification. It can also make portfolio monitoring and rebalancing relatively straightforward.

A bucket strategy, meanwhile, can make retirement planning more intuitive because it connects investments directly to future spending. It may also help investors understand why some money can remain invested for growth while other money needs greater stability.

However, a bucket strategy should not be used to create artificial compartments that prevent sensible portfolio management. For example, holding several years of expenses entirely in cash might provide psychological comfort but could also leave too much of your wealth exposed to inflation.

Similarly, applying one asset allocation to your entire portfolio without considering when you will need the money could expose near-term retirement spending to unnecessary investment volatility.

How Often Should an Expat Review Retirement Asset Allocation?

I believe retirement planning should be reviewed when something important changes, rather than simply because another 12 months have passed.

Useful review points include:

• changing country of residence;

• changing employment;

• receiving a significant bonus;

• receiving an inheritance;

• buying or selling property;

• getting married or divorced;

• starting a family;

• approaching retirement;

• receiving a pension transfer opportunity;

• changing expected retirement age;

• changes to your expected retirement destination; or

• significant changes to tax legislation.

For expats, geographical changes can be especially important.

Moving from Dubai to the UK, for example, may create a very different tax and investment environment from moving from Dubai to Singapore.

Your retirement strategy should evolve with your life.

A Practical Retirement Asset Allocation Framework For UK Expats

Once you understand the main asset classes, your retirement time horizon, risk tolerance and capacity for loss, the next step is to bring these factors together into a practical plan.

The following framework provides a straightforward starting point. Work through each step in order, because the answer to one question should help inform the next.

Step 1: What Will Retirement Cost?

Start by estimating how much you expect to spend each year in retirement. Rather than using one broad figure, separate essential spending from discretionary spending.

For example:

This gives you a starting target of £35,000 a year. Next, consider whether that figure is realistic for your expected retirement location. An expat retiring in the UK may have a very different cost of living from someone planning to retire in Spain, Thailand or Singapore.

Also allow for inflation. If your current retirement budget is £35,000, you should not assume that £35,000 will have the same purchasing power 20 years from now.

Once you have a realistic spending target, you can move to the next question: how much of that income will already be covered by pensions and other sources?

Step 2: What Income Will You Already Have?

Now identify your expected sources of reliable retirement income. These could include:

• UK State Pension

• Defined benefit pensions

• Overseas pensions

• Annuities

• Rental income

• Other reliable income

Suppose your estimated retirement spending is £35,000 a year and you expect £15,000 from pensions and other relatively secure income.

Your initial investment income requirement would therefore be:

£35,000 − £15,000 = £20,000 a year

This is an important distinction. You do not necessarily need your investment portfolio to generate your entire retirement income.

However, avoid assuming that all future income is guaranteed. Check when each pension begins, whether payments increase with inflation, which currency they are paid in and how secure the income is.

Once you understand your expected income gap, you can determine how much of your wealth may need to support it.

Step 3: What Assets Do You Already Own?

Next, create a complete inventory of your assets. Include more than just your investment accounts.

Your list might contain:

• UK workplace pensions

• SIPPs

• Overseas pensions

• ISAs

• General investment accounts

• Cash savings

• UK property

• Overseas property

• Business interests

• Other significant investments

Then calculate your total financial position.

For example:

This broader view can reveal concentrations that are not obvious when looking at one account at a time.

For instance, if £400,000 of your £1 million wealth is tied up in property, property represents 40% of your total assets. Your investment portfolio may be well diversified, but your overall wealth is still significantly exposed to property.

Once you know what you already own, you can assess whether your current asset mix supports the retirement income target established in Steps 1 and 2.

Step 4: What Currencies Will You Need?

For UK expats, this step deserves particular attention because your current and future financial lives may involve several currencies.

Consider:

• Which currency you earn in today

• Which currencies your pensions are denominated in

• Where your property is located

• Which currency you expect to spend in retirement

• Whether you expect to return to the UK

For example, if you currently earn in US dollars but expect to retire in the UK, your future spending will largely be in pounds. A significant fall in the dollar against sterling could therefore affect the value of your overseas assets when measured against your future spending needs.

You do not necessarily need to eliminate currency risk. Instead, understand where it exists and decide whether it is appropriate for your circumstances.

A useful principle is to match at least some assets, particularly assets intended for near-term spending, with the currency in which you expect to spend them.

Once your future currency requirements are clearer, you can move on to assessing how much investment risk you can realistically take.

Step 5: How Much Investment Loss Can You Withstand?

At this stage, combine your risk tolerance with your capacity for loss.

Ask yourself how you would respond if your portfolio fell by 10%, 20% or more. Then consider whether you could still meet your essential spending requirements if that happened.

For example, a £500,000 portfolio falling by 20% would temporarily lose:

£500,000 × 20% = £100,000

The more dependent you are on that £500,000 for immediate retirement income, the more significant that loss could be.

However, if you have substantial guaranteed pension income, cash reserves and other assets, you may have greater capacity to withstand market volatility.

This step helps establish the boundaries within which your asset allocation should operate. Only after understanding those boundaries should you decide how much to allocate to equities, bonds, cash and other assets.

Step 6: How Long Will The Money Need To Last?

Finally, consider the full length of your retirement rather than simply your expected retirement date.

If you retire at 65 and live to 90, your portfolio could need to support you for 25 years. Some assets may therefore need to remain invested long after you stop working.

Think about your money in different time horizons:

These are planning ranges rather than fixed rules. Your circumstances may justify a different approach.

The key is to avoid assuming that retirement means your entire portfolio should immediately become defensive. If some of your money will not be needed for decades, it may still need exposure to growth assets to help maintain its purchasing power.

With your spending needs, existing income, assets, currencies, risk profile and time horizon now established, you have the information needed to construct a more appropriate retirement asset allocation.

The final step is to bring everything together: decide what role each part of your wealth should play, select an appropriate mix of assets, and review the strategy regularly as your circumstances change.

How Benjamin Sharvell IFA Helps UK Expats with Retirement and Investment Planning

As a globally experienced financial adviser and an expat myself, I understand that living overseas can create both opportunities and complications.

My role is not simply to select investments.

I work with clients to understand where they are today, where they want to be in the future and what needs to happen between those two points.

My Future Planning services include retirement planning, education fee planning, pension planning and succession planning. I work with clients to research global markets and, where appropriate, collaborate with technical and tax advisers to develop solutions around their specific circumstances.

For clients looking at Savings Solutions, this can include regular savings, lump-sum solutions, foreign exchange and offshore banking, with the objective of making their savings arrangements more efficient and suitable for their circumstances.

My Pension Solutions cover a range of arrangements, including UK pensions, Swiss pensions, Irish and European pensions, SIPPs, QROPS and QNUPS. The appropriate solution depends on the individual's circumstances, objectives and residence.

I also advise on Property Solutions, including property investments and UK and international mortgages, as well as Insurance Solutions covering areas such as health and life insurance.

The underlying principle is straightforward: your retirement strategy should be personal to you.

Ready To Build A Retirement Investment Strategy That Fits Your Life?

Retirement asset allocation is not about finding a perfect percentage of equities, bonds or cash. It is about building a strategy around your goals, time horizon, income needs, risk profile, pensions, currencies and future plans.

If you are unsure whether your current retirement asset allocation is working for you, professional advice can help you understand your options and build a strategy around the life you want to live.

As a globally experienced financial adviser, and an expat myself, I help clients plan, consolidate, grow and position their wealth for the future.

Contact us today to arrange a free consultation!

Frequently Asked Questions About Retirement Asset Allocation

1. What Is A Good Retirement Asset Allocation?

There is no single retirement asset allocation that is suitable for everyone. The right balance between equities, bonds, cash and other assets depends on factors such as your age, retirement time horizon, income needs, risk tolerance, capacity for loss and existing wealth. UK expats should also consider currency, tax residence, pensions and where they expect to retire.

2. How Much Should I Invest In Equities For Retirement?

The appropriate equity allocation depends largely on how long your money needs to remain invested and how much investment risk you can afford to take. Someone with 20 years before retirement may have more scope for equity exposure than someone who will begin drawing heavily from their portfolio within two years. Even after retirement, however, some equity exposure may be appropriate because retirement can last for several decades.

3. Should UK Expats Hold Their Retirement Investments In Sterling?

Not necessarily. Your investment currency should reflect your broader financial circumstances and, particularly, the currencies in which you expect to spend your retirement income. If you plan to return to the UK, sterling exposure may be important, while someone planning to remain overseas may have different requirements. The objective is to manage currency risk rather than automatically favour one currency.

4. Is A Retirement Bucket Strategy Better Than Asset Allocation?

They serve different purposes and can work well together. Retirement asset allocation determines how your portfolio is divided between assets such as equities, bonds and cash, while a bucket strategy divides your wealth according to when you expect to need it. Combining the two can help you match your investments with both your risk profile and your future spending needs.

5. Should I Change My Asset Allocation As I Approach Retirement?

Your retirement asset allocation should be reviewed as your circumstances change, particularly as retirement approaches. You may need greater liquidity for near-term spending, while still retaining growth assets for a potentially long retirement. Rather than automatically moving everything into lower-risk investments, consider your income needs, investment horizon, capacity for loss, inflation and other sources of retirement income.