- March 27, 2022
- Posted by: Bastion team
- Category: World News
You might not be planning to experience unexpected financial shocks in retirement. But you should be according to the results of a survey recently published Society of Actuaries Research Institute’s Aging and Retirement Strategic Research Program.
According to a recent Society of Actuaries survey, about half of the pre-retirees report experiencing some type of unexpected financial shock, as well as more than 4 in 10 retirees. And, 1 in 5 pre-retirees report that these shocks have reduced their assets by 25% or more and reduced their spending by 10% or more.
The good news is that far fewer retirees report these reductions, according to the 2021 Retirement Risk Survey Report of Findings. For example, just 1 in 10 retirees (11%) report that shocks reduced their assets by more than 25%.
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Pre-retirees least prepared for a crisis
Other key findings: When asked what they could afford to spend out of pocket on an emergency without jeopardizing their retirement security, half of pre-retirees report that they could only afford to spend $10,000 or less and more than half of retirees could afford no more than $25,000. Black/African American pre-retirees (61%) are more likely than pre-retirees in general (40%) to be impacted by an unexpected expense of up to $10,000.
Among retirees, Black/African American respondents (58%) and Hispanic/Latino (52%) said they are not able to spend…