Why Unexpected Expenses Can Hit Retirees Hard
During retirement, you are probably living off a fixed income. So, unexpected expenses can really hurt your budget.
It’s common knowledge that financial experts recommend non-retirees keep three to six months of living expenses set aside for an emergency. But an article by CNBC points out that is not always possible for retirees. Citing new research from the Center for Retirement Research at Boston College, more than 8 in 10 retiree households — 83% — will face unplanned outlays in any given year. And the average annual amount spent during retirement is $6,000 – that’s equivalent to 10% of yearly income. This illustrates why retirees relying on Social Security struggle.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
