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As you gauge\u00a0how much income you\u2019ll need to pay for your living expenses in\u00a0retirement<\/a>, don\u2019t forget\u00a0to consider\u00a0<\/strong>how you\u2019ll cover unexpected costs.<\/p>\n More than 8 in 10 retiree households<\/a> \u2014 83% \u2014 will face unplanned outlays in any given year, according to new research<\/a> from the Center for Retirement Research at Boston College. Among households that do experience unexpected expenses, the average annual amount spent across retirement is $6,000. Measured another way, the typical household will spend an amount equivalent to 10% of its yearly income.<\/p>\n Yet many households don\u2019t have that available in emergency savings, according to the research. While roughly 58% have enough cash to cover unplanned costs for a single year, around 16% would have to tap their 401(k)<\/a> or other retirement accounts and the rest \u2014 about 27% \u2014 would fall short even after using all their cash and retirement assets.<\/p>\n \u201cAbout 40% of [retired] households do not have enough cash to cover even a single year [of unplanned expenses], let alone their whole retirement,\u201d the research notes. <\/p>\n The research uses data from 3,427 retired households that have been part of the 2000-2020 Health and Retirement Study and the Consumption and Activities Mail Survey, both from the University of Michigan.<\/p>\n<\/div>\n While experts generally recommend nonretirees have three to six months of living expenses set aside as emergency savings in case of job loss or other financial shocks, that amount may look different for retirees \u2014 who must figure out how to stretch their savings across what may be a decades-long retirement.<\/p>\nIt\u2019s important to have some cash savings<\/h2>\n