How many years of retirement expenses should I keep in safer investments?
Published 18 September 2026
Your opinion Ravi?
There is no single constant number because the allocation depends on whether the investor is conservative or aggressive and what their requirements are.
But typically, a minimum of two to three years of requirements can be kept in safer instruments.
The purpose is to have enough money available for your short- to medium-term requirements while allowing the remaining corpus to stay invested for longer-term requirements.
This also gives you peace of mind during periods when equity markets are volatile because you are not forced to withdraw money from equity at that time.
The allocation then needs to be rebalanced as you move forward and your requirements change.
“A minimum of two to three years of requirement should be kept in the safer instrument to take you through it, and the balance should be in equity.”
This question and answer is derived from the podcast between Ravi and Sachin. See the full podcast here.
This is not personalized investment advice. Your financial situation, goals and constraints may be different, so assess your own situation and discuss it with your financial advisor.
But typically, a minimum of two to three years of requirements can be kept in safer instruments.
The purpose is to have enough money available for your short- to medium-term requirements while allowing the remaining corpus to stay invested for longer-term requirements.
This also gives you peace of mind during periods when equity markets are volatile because you are not forced to withdraw money from equity at that time.
The allocation then needs to be rebalanced as you move forward and your requirements change.
“A minimum of two to three years of requirement should be kept in the safer instrument to take you through it, and the balance should be in equity.”
This question and answer is derived from the podcast between Ravi and Sachin. See the full podcast here.
This is not personalized investment advice. Your financial situation, goals and constraints may be different, so assess your own situation and discuss it with your financial advisor.