In most retirement plans, the bucket approach is applied only to expenses, while the legacy is treated as whatever remains. This can be counterproductive for retirees who value leaving a bequest.

Creating a separate legacy bucket helps determine how much can safely be spent on discretionary consumption while preserving the intended inheritance. This approach reduces both overspending, which may erode the legacy, and underspending, which can unnecessarily restrict lifestyle.

In addition, for those near the financial margin, the structure provides reassurance that essential expenses can be covered while the legacy goal remains intact, allowing retirees to spend with greater clarity, confidence, and discipline.