A new study which was published by the Society of Actuaries Research Institute’s Aging and Retirement Strategic Research Program found that many retirees and pre-retirees aren’t prepared for a financial shock, and the likelihood of that happening is increasing. Many economists are saying that the odds are increasing that we will soon enter a recession, and Russia’s attack on Ukraine is likely to wreak havoc on the stock market. According to the study, about half of pre-retirees report that they already experienced a financial shock, along with 4 in 10 retirees. These shocks have reduced the assets of pre-retirees by 25% or more and their spending by 10% or more. Experts urge retirees to build a reserve fund. Half of pre-retirees could only afford to spend $10K or less on an emergency while retirees reported they could afford no more than $25K. There are plenty of great financial advisors on the Monterey Peninsula and you should consult with one yearly.
