40% Of US Retirees Can't Cover A Year of Unexpected Expenses — Why Emergency Funds Still Matter

A new study finds many US retirees cannot cover unexpected costs, underlining the need for emergency funds in later life. (Credit: Pexels)

By any measure, retirement is meant to bring financial stability. Yet for many households in the US, that stability is proving fragile. New research suggests a significant share of retirees are ill-prepared for the very risks that define later life.

A study by the Center for Retirement Research at Boston College finds that 40% of retirees cannot cover even one year of unexpected expenses. The finding points to a persistent gap between financial planning advice and real-world preparedness.