Once the salary stops, a cash buffer does different work. It covers roof repairs, car replacements, and the odd year when markets fall just as you need a withdrawal. It is not meant to sit forever as the largest share of household wealth.
We often start with twelve months of essential spending in easy-access or short-notice accounts, then refine. Households with reliable defined-benefit income may hold less; those relying mainly on drawdown may prefer more. The buffer should feel dull — that is its job.
Inflation quietly taxes oversized cash piles. Money left idle beyond the buffer belongs in a plan: some for medium-term spending, some for longer growth. The split depends on health, housing plans, and whether adult children may need help.
Review the buffer once a year, ideally after the winter energy season when true costs are clearer. Top up from taxable withdrawals or ISA sales in a controlled way rather than reacting to every market headline.
If you are unsure where the line sits between caution and drag, ask for a cash-flow sketch alongside your retirement income plan. Numbers settle the argument better than instinct alone.