Retired? Here's How Much You Actually Need in Your Emergency Fund
Stop me if you've heard this before: You should keep enough money in an emergency savings account to cover three to six months' worth of expenses. (Anyone who's ever written about personal finance probably feels like they have that little ditty tattooed on their brain. We certainly dole it out often enough.)But what if you're retired? How much should you keep tucked away in an emergency fund? Do you even need an emergency fund? Here, we'll dive in and offer a slightly different take on the subject.If your cost of living is extremely low, you may have more income than you need to cover all situations, including emergencies. Let's say you've retired with very few bills, but your income is robust. You have Social Security or perhaps a pension. You spent years building your retirement accounts, and now they provide far more than you need to pay your monthly obligations.Continue reading
Stop me if you've heard this before: You should keep enough money in an emergency savings account to cover three to six months' worth of expenses. (Anyone who's ever written about personal finance probably feels like they have that little ditty tattooed on their brain. We certainly dole it out often enough.)
But what if you're retired? How much should you keep tucked away in an emergency fund? Do you even need an emergency fund? Here, we'll dive in and offer a slightly different take on the subject.
If your cost of living is extremely low, you may have more income than you need to cover all situations, including emergencies. Let's say you've retired with very few bills, but your income is robust. You have Social Security or perhaps a pension. You spent years building your retirement accounts, and now they provide far more than you need to pay your monthly obligations.
