Retirees lack emergency savings to cover yearly unexpected expenses
CNBC • • business
Key Points:
- Over 83% of retiree households face unexpected expenses annually, averaging $6,000 or about 10% of their yearly income, but many lack sufficient emergency savings to cover these costs.
- Approximately 40% of retired households do not have enough cash to cover even a single year of unplanned expenses, forcing some to tap into retirement accounts or fall short entirely.
- Unexpected expenses fall into three main categories: "rainy day" costs (car or home maintenance), family-related expenses (such as spousal death or financial help), and health-care costs above $500.
- Financial experts suggest retirees maintain access to cash for surprises equivalent to about one year of core expenses, adjusted for guaranteed income, to avoid selling long
