Prepare for unexpected expenses in retirement

Planning for the unexpected and having a nest egg is great in theory. But for the people who live paycheck to paycheck, it's not always an option.

Luckily, we have a nest egg, but about a year before retirement, we bought several things we thought would be needed or wanted in the not too distant future while the income was still coming in and would be paid off before retirement. We didn't want to touch the nest egg unless absolutely necessary. Always waiting for the other shoe to drop!
 
Planning for the unexpected and having a nest egg is great in theory. But for the people who live paycheck to paycheck, it's not always an option.

Luckily, we have a nest egg, but about a year before retirement, we bought several things we thought would be needed or wanted in the not too distant future while the income was still coming in and would be paid off before retirement. We didn't want to touch the nest egg unless absolutely necessary. Always waiting for the other shoe to drop!
That’s exactly why we encourage people to start early!
 

We had thought years ahead for retirement. Have Roth's. Annuities and investments. Had everything paid off before the wife retired. Have a money advisor who took her pension and vacation time she had built up and put into the accounts. We are set very well for the rest of our retirement lives. Should both of us pass the step dauhters will be set for life
 
It is so great to be retired and have no mortgage to pay.
So true! I paid off the 2nd mortgage on my house with my half of the profit on the house we owned when My Ex and I divorced. 10 years later I started doubling the payment I was making on the mortgage each month and I was ultimately able to completely pay it off two years after I retired. I absolutely love being completely debt free. My vehicles are paid off - I paid cash for the Smart Car.
I spent so many years behind the financial eight ball due to Exs" poor spending habits. I've finally been able to save and I pay off my credit cards every month. It's a great feeling!
 
Bear in mind I’m in Canada. We get CPP and OAS in retirement just for living and working here. We paid our mortgage off 6 years early…about 15 years before retirement. Hubby worked what was basically a government job for over 25 years, so qualified for a defined benefit pension with a few odd tweaks. It doesn’t match inflation 100%, so the higher inflation rates go the less buying power we have. Thankfully we have some money (not much) in RRSPs and TFSAs. Plus I insisted on a healthy Emergency Fund as we were a one income family. Hubby retired about 6 years ago and we’re still doing fine.

We paid cash for our current house in a private sale at the beginning of the pandemic. It was a smart move. The assessed value has risen over 50% in three years. Hopefully we’ll have enough money to pay for a nursing home come the time it’s needed…if there are any beds available!
 
I became a saver in my mid 20's and a self taught investor in my late 30's. I managed to be debt free before I retired in 1998. My pension is more than enough to pay my monthly expenses, so I can save/invest my SS. I could actually pay my current expenses out of my emergency fund for close to four years if I had no other income.
 


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