Financial shocks are always unwelcome, but the jolt is even worse after you retire and no longer receive a steady paycheck.
A huge percentage of retirees — 81% of women and 69% of men — report having experienced such financial upheaval at some point during their golden years, according to a survey of thousands of adults conducted by Age Wave and Edward Jones.
The following types of shocks have had an especially large impact on today’s retirees. Knowing more about the financial surprises you can expect during retirement can help you better prepare for them.
5. Assisting a relative or friend financially
Retirees who have experienced this financial shock: 9%
It is difficult enough to keep yourself financially afloat in retirement, let alone trying to support others. Some retirees report feeling a major money shock after stepping up with funds to help family and friends.
To avoid this fate, learn about the “6 Ways to Help Adult Children Without Going Broke.”
4. Significant decline in the value of investments
Retirees who have experienced this financial shock: 19%
A long bear market that began in 2022 didn’t end until June 2023, and many retirees continue to suffer from this downturn in their portfolios.
If you are struggling to repair a cracked nest egg, check out “Warren Buffett’s 2-Step Plan for Surviving a Bear Market.”
3. Home expenses or repairs
Retirees who have experienced this financial shock: 20%
Many retirees are surprised to find out that owning a home is the single biggest expense people face in retirement. The paychecks may stop arriving, but taxes and insurance, utility and repair bills never do.
To take a proactive approach to repairs — possibly save you a lot of money in the long run — make sure to tackle the “5 Easy Home Repairs That Save Money.”
2. Medical or dental expenses
Retirees who have experienced this financial shock: 22%
Medical expenses also can put a huge dent in a retiree’s nest egg. That is especially true in unhappy situations where a retiree or their spouse is diagnosed with a chronic and expensive condition.
You can cut medical costs if you don’t overlook the “12 Surprising Ways to Save on Retirement Health Care Costs.”
1. Inflation/rising cost of living
Retirees who have experienced this financial shock: 63%
When it comes to financial shocks, nothing is close to the blow that inflation has inflicted these days on nest eggs from coast to coast.
Almost three times as many retirees say they have felt the sting of inflation than any other shock on this list.
If rising prices have you down, fight back by tapping into the “10 Sure-Fire Ways to Beat Inflation.”