Nearly Three-Quarters of Retirees Experience a Financial Shock

Submitted on Wed, 10/26/2016 - 3:56 pm
PlanAdvisor

72% of retirees experience at least one financial shock, and for one third of them, it depletes their savings by 25%, according to the Society of Actuaries’ (SOA) 2015 Risks and Processes of Retirement Survey. The types of shocks and unexpected expenses most often reported by retirees include:

  • Major home repairs and upgrades (28%)
  • Major dental expenses (24%)
  • Significant out-of-pocket medical and prescription expenses (20%)
  • A drop in home value of 25% or more (19%)
  • An illness or disability that limited your (or your spouse/partner’s) ability to care for (yourself/yourselves) (12%)
  • A sudden loss in the total value of your savings of 25% or more due to a fall in the market (12%)
  • A family emergency that impacted the amount of money you were able to spend on other things or required using 10% or more of your savings (11%)
  • Running out of assets (9%)