Only 27% Think They'll Survive a Financial Shock in Retirement. These Are The Two Costs That Often Surprise People

Core Insights - Many retirees are unprepared for unexpected expenses, with only 27% able to withstand financial shocks during retirement according to a T. Rowe Price survey of over 7,000 retirees globally [2] Group 1: Financial Shocks in Retirement - Common financial shocks faced by retirees include medical expenses not covered by Medicare and housing-related costs [6] - Health care costs are a significant concern, particularly the unexpected expenses that arise between catastrophic illnesses, which are often not planned for [6] - Financial planners emphasize the importance of having a safety margin and a flexible plan to adapt to unforeseen circumstances in retirement [3] Group 2: Health Care and Insurance Coverage - Medicare starts at age 65 but does not cover all medical expenses, leading many retirees to purchase supplemental insurance [4] - Even with supplemental plans, retirees may still face high medical bills due to gaps in coverage [6] - Long-term care costs are not covered by Medicare or supplemental plans, making it essential for retirees to evaluate their potential medical needs before retirement [7]