Retirement Savings Need Emergency Fund

Written by Swiss America

money 1428594 640How an emergency fund can help your retirement savings -USA Today
"When it comes to preparing for retirement, saving is only half the battle....Unexpected expenses are a part of life. Your old car finally gave out and you need to buy a new one.

Your basement flooded and requires costly repairs. Or a sudden injury led to a trip to the hospital. These types of costs are bound to pop up, but they can be detrimental in retirement. Because you're living on a fixed income in retirement, you likely don't have much wiggle room in your budget....That's where the emergency fund comes in. When you have a solid emergency fund in retirement, you have a designated place to pull cash from when an unexpected expense inevitably crops up. That helps protect your retirement savings, guaranteeing that your money lasts for as long as possible....Exactly how much you should save depends on multiple factors, such as how long you expect to spend in retirement and what your current savings look like. If you plan to retire early or have reason to believe you'll be spending several decades in retirement, you'll need a larger emergency fund."