8 assumptions that create bad retirement surprises for employees - #7

When you think about this one carefully, it becomes obvious that it makes no sense. But if you ask most retirees if they are actively saving each month for emergencies, many say no. Why? Well, some may have access to cash for emergencies within their portfolios, though they have to keep in mind if withdrawing from an account will trigger tax consequences. 

Some seem to think that once you’re retired, there’s no longer a threat that you could lose your job, so why save each month? But that only makes sense if you have no other risks. Bad surprises, like home repairs, medical costs not covered by insurance, or helping a loved one experiencing a financial crisis can all come up in retirement. 

And most retirees will have to replace their car at least once during retirement. It won’t last for all of their remaining driving years, let alone without any repair costs. The younger you are when you retire, the more important saving regularly for emergencies during your retirement is. 

Check out this article on savings that you can share with your employees. 

Did you miss the assumptions we already covered? Check out 1, 2, 3, 4, 5, and 6