How Much Are Emergency Expenses for Retirees and Are They Prepared?

The brief’s key findings are:
People of all ages need emergency savings, but researchers tend to focus on the working-age population.

In contrast, this study explores the needs of retired households.

The results show that the typical retired household spends 10 percent of income on unexpected expenses in a normal year.

Strikingly, two in five households lack the cash to cover such expenses for just one year. And one in five falls short even after including retirement savings.

In short, unexpected expenses could be a source of financial stress for which many retirees are unprepared, especially those with lower incomes.