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.

https://www.usatoday.com/story/money/personalfinance/retirement/2022/03/25/retirement-prepare-sudden-financial-hardship/7157673001/

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