Even for the most prepared retiree, unexpected expenses duringretirement can derail a carefully crafted financial plan.

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Some of these risks are more obvious than others. Not havingenough money to cover expenses and outliving savings are two risksthat most people think about when planning for retirement. Butless-obvious expenses can sneak up on retirees and cause both minorand major impacts to their financial situation.

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The Society of Actuaries studied the impact of unexpected orshocking retirement expenses during its 2015 update to itsbiennial risk survey started in 2001. The study followed up withfocus groups to supplement regular surveys with people who wereretired at least 15 years to understand the long-term impact of alack of retirement planning. While almost three in tenretirees (28%) report experiencing none of these shocks orunexpected expenses, 13% say they encountered three and 19%encountered four or more in retirement. One-quarter of retiredwidows (24%) indicate they have encountered four or more.

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The society asked retirees and retired widows which retirementexpenses they had encountered during retirement. Read on the findout about these costs, along with the relevant break down by age,gender and household income.

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17. Loss ofcapacity requiring someone outside the household to manage yourmoney

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Retirees: 1%

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Retired widows: 1%

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Men: 1%

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Women: 1%

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Age 45-59: 4%

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Age 60-69: 0%

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Age 70-80: 1%

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Household income less than $35,000: 2%

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Household income $35,000 – $74,000: 1%

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Household income greater than $75,000: –

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16. Divorceduring retirement

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Retirees: 3%

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Retired widows: 1%

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Men: 3%

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Women: 3%

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Age 45-59: 3%

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Age 60-69: 4%

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Age 70-80: 3%

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Household income less than $35,000: 5%

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Household income $35,000 – $74,000:2%

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Household income greater than $75,000: 2%

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15. Significantdamage to or loss of home due to fire or naturaldisaster

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Retirees: 3%

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Retired widows: 4%

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Men: 2%

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Women: 4%

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Age 45-59: 5%

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Age 60-69: 2%

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Age 70-80: 3%

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Household income less than $35,000: 2%

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Household income $35,000 – $74,000: 4%

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Household income greater than $75,000: 2%

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14. Loss of homethrough foreclosure

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Retirees: 3%

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Retired widows: 6%

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Men: 2%

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Women: 3%

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Age 45-59: 6%

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Age 60-69: 3%

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Age 70-80: 2%

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Household income less than $35,000: 4%

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Household income $35,000 – $74,000: 2%

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Household income greater than $75,000: 1%

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13.Bankruptcy

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Retirees: 4%

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Retired widows: 4%

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Men: 5%

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Women: 3%

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Age 45-59: 8%

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Age 60-69: 3%

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Age 70-80: 4%

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Household income less than $35,000: 7%

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Household income $35,000 – $74,000: 3%

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Household income greater than $75,000: 1%

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12. Victimization by fraud orscam

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Retirees: 6%

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Retired widows: 5%

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Men: 5%

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Women: 7%

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Age 45-59: 11%

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Age 60-69: 5%

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Age 70-80: 5%

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Household income less than $35,000: 8%

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Household income $35,000 – $74,000: 5%

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Household income greater than $75,000: 4%

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11. Loss in total value ofsavings of 10% or more due to poor investmentdecisions

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Retirees: 9%

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Retired widows: 8%

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Men: 12%

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Women: 7%

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Age 45-59: 16%

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Age 60-69: 9%

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Age 70-80: 8%

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Household income less than $35,000: 11%

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Household income $35,000 – $74,000: 9%

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Household income greater than $75,000: 7%

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10. Death of a spouse orlong-term partner

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Retirees: 10%

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Retired widows: 56%

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Men: 5%

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Women: 14%

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Age 45-59: 4%

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Age 60-69: 6%

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Age 70-80: 16%

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Household income less than $35,000: 15%

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Household income $35,000 – $74,000: 7%

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Household income greater than $75,000: 5%

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9. Family emergencythat impacted the amount able to spend on other things or used 10%or more of savings

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Retirees: 12%

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Retired widows: 18%

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Men: 11%

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Women: 13%

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Age 45-59: 20%

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Age 60-69: 11%

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Age 70-80: 11%

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Household income less than $35,000: 17%

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Household income $35,000 – $74,000: 11%

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Household income greater than $75,000: 6%

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8. Going onMedicaid

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Retirees: 14%

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Retired widows: 11%

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Men: 16%

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Women: 12%

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Age 45-59: 24%

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Age 60-69: 12%

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Age 70-80: 12%

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Household income less than $35,000: 27%

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Household income $35,000 – $74,000: 6%

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Household income greater than $75,000: 3%

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7. Sudden loss of totalvalue of savings of 25% or more due to a fall in themarket

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Retirees: 14%

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Retired widows: 13%

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Men: 14%

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Women: 14%

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Age 45-59: 13%

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Age 60-69: 9%

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Age 70-80: 19%

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Household income less than $35,000: 15%

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Household income $35,000 – $74,000: 12%

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Household income greater than $75,000: 14%

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6. Running outof assets

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Retirees: 15%

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Retired widows: 16%

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Men: 15%

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Women: 15%

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Age 45-59: 23%

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Age 60-69: 13%

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Age 70-80: 13%

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Household income less than $35,000: 27%

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Household income $35,000 – $74,000: 9%

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Household income greater than $75,000: 3%

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5. Illness or disabilitythat limited the retiree's ability to care for himself orherself

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Retirees: 15%

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Retired widows: 22%

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Men: 15%

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Women: 15%

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Age 45-59: 25%

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Age 60-69: 13%

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Age 70-80: 14%

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Household income less than $35,000: 21%

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Household income $35,000 – $74,000: 12%

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Household income greater than $75,000: 9%

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4. Drop in home valueof 25% or more

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Retirees: 16%

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Retired widows: 22%

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Men: 16%

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Women: 16%

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Age 45-59: 13%

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Age 60-69: 15%

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Age 70-80: 19%

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Household income less than $35,000: 13%

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Household income $35,000 – $74,000: 19%

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Household income greater than $75,000: 18%

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3. Significantout-of-pocket medical or prescription expenses from a chronichealth condition or disability that did not limit the retiree'sability to care for himself or herself

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Retirees: 20%

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Retired widows: 12%

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Men: 22%

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Women: 18%

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Age 45-59: 31%

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Age 60-69: 21%

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Age 70-80: 15%

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Household income less than $35,000: 27%

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Household income $35,000 – $74,000: 20%

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Household income greater than $75,000: 8%

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2. Major dentalexpenses

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Retirees: 24%

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Retired widows: 28%

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Men: 23%

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Women: 25%

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Age 45-59: 27%

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Age 60-69: 20%

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Age 70-80: 28%

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Household income less than $35,000: 23%

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Household income $35,000 – $74,000: 23%

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Household income greater than $75,000: 26%

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1. Major homerepairs or upgrades

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Retirees: 28%

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Retired widows: 34%

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Men: 28%

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Women: 29%

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Age 45-59: 28%

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Age 60-69: 27%

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Age 70-80: 31%

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Household income less than $35,000: 23%

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Household income $35,000 – $74,000: 30%

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Household income greater than $75,000: 35%

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