'Bucket plans failing seniors': Advisor warns India’s retirees of a looming money crisis

That bucket strategy you trust could be quietly wrecking your retirement, warns financial adviser Ravi Saraogi.

In a Mint Money column, Saraogi—CFA, SEBI-registered investment adviser, and co-founder of Samasthiti Advisors—delivers a clear message to retirees: your bucket strategy might feel safe, but it’s built on illusion. 

And if you’re depending on it, your money may not last as long as you do.

“Using buckets might help you sleep better,” Saraogi warns. “But don’t expect it to make your money go further.”

Many senior citizens have been told that by drawing retirement income from low-risk assets first—while letting equities recover—they’re protected from market downturns. But Saraogi dismantles that belief with sharp data and sharper language. 

Bucket strategies, he writes, fail to take advantage of market lows and often lead to lower safe withdrawal rates than simple monthly or annual rebalancing.

Why? Because typical bucket plans only rebalance when equities are up. They don’t buy low—one of the most crucial moves in long-term portfolio survival. “It’s a one-way street,” Saraogi warns. And in retirement, that road may lead straight to portfolio depletion.

Worse, many retirees adopt the strategy thinking it reduces “sequence-of-return” risk—the very real danger of withdrawing during a market crash. But according to Saraogi, that belief is dangerously misplaced. “If you’re using a bucket plan because you think it’s safer, you’re gambling on false comfort.”

He points out that even Harold Evensky, the architect of the bucket strategy, called it behavioural insurance—not a performance tool.

Saraogi’s bottom line is chilling: If you’re a retiree drawing down your life savings, emotional comfort isn’t enough. You need strategy, discipline, and math on your side. Without it, the nest egg you’ve built could unravel far faster than you expect.