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%)