This question might make more sense if you're a FIRE enthusiast, but I think it could apply to most retirees.

So, a lot of people seem to pick a target monthly or annual income for retirement, and work towards achieving that, often roughly based on their current expenditure minus mortgage etc.

Some people seem to treat this as an 'everything' number, and once they're retired, effectively 'save' from it every month in order to build up a buffer as they go along. Other people seem to see it as their basic monthly expenditure, and maintain separate funds for emergencies and treats.

if you are in the latter category, how much are you holding or aiming to hold as contingency for emergencies and treats ie separate from your monthly income allocation?

And if you're in the former category, how is it going for you not having a separate contingency allocation?

Just interested in different ways people think about managing their money in retirement.

I always have 2+ years living expenses in cash
I hold this cash in 2 x Instant Access Cash ISAs ( wife and I) and one High Interest Bank Account in my name for tax reasons
I use this cash constantly (every 2 x weeks) to fund my current account and then pay off the Visa bill
I top up these cash accounts once or twice a year from my investment portfolio (ISAs and SIPPs)
xxd09
PS now both wife and I now aged 78-been using this system for many years-23 years rtd