Actually there are none … or at least their shouldn’t be.
The fact is that just about every possible financial surprise or better stated, unplanned for financial expense, you have while working will occur during retirement.
You have two choices to deal with them.
Make sure that your stream of income from your investments or other sources is sufficient to allow for financial emergencies. In other words, you live below your means.
And/or maintain and sustain an emergency fund in addition to retirement accounts.
I looked at my own experiences over the last eleven years retired and listed significant unplanned for expenses. I also asked some other retirees. Here is what we came up with. I’m sure there is nothing to shock you, but have you considered them?
- Major home and car repairs and maintenance like taking down a tree, new roof, four new tires
- Damage to your property from a storm. Moving to Florida are we?
- Replacing new appliances. Have you priced a new fridge lately?
- Dental work. No Medicare coverage for this. We are talking thousands of dollars here.
- Hobbies. Old or new hobby, have you taken a good look at what it costs?
- Pets. On average a cat or dog costs about $1,000 per year, but throw in some surgery and it’s big bucks.
- Helping family. That can be both a big surprise and a big unforeseen expense. You would be amazed at how many retirees mention this one. I bet you thought it was more the other way around.