Unexpected Expenses Take 10% of Retirees' Income, on Average, Research Shows
Unexpected expenses can be a significant burden for retirees, with research showing that the typical retiree household will spend an amount equivalent to 10% of annual income on unexpected expenses. According to a recent study, about 40% of retirees lack the cash to cover these costs.
The study found that unexpected expenses can come from a variety of sources, including car repairs, medical bills, and home maintenance. These expenses can be particularly challenging for retirees who are living on a fixed income and may not have the financial resources to cover them.
The study's findings highlight the importance of having a solid emergency fund in place to cover unexpected expenses. This can help retirees avoid going into debt and reduce their financial stress.
The Impact of Unexpected Expenses on Retirees
Unexpected expenses can have a significant impact on retirees' financial well-being. According to the study, the typical retiree household will spend an amount equivalent to 10% of annual income on unexpected expenses. This can be a significant burden, particularly for retirees who are living on a fixed income.
The Importance of Emergency Funds
Having a solid emergency fund in place can help retirees avoid going into debt and reduce their financial stress. An emergency fund can provide a cushion against unexpected expenses, such as car repairs or medical bills.
Conclusion
Unexpected expenses can be a significant burden for retirees, with research showing that the typical retiree household will spend an amount equivalent to 10% of annual income on unexpected expenses. Having a solid emergency fund in place can help retirees avoid going into debt and reduce their financial stress.