Preparing for emergencies in retirement requires balancing financial risk and quality of life.

Sudden health events or care needs can push Canadian seniors and their families into financial strain; a U.S. study cited in the article found about 58% of seniors have enough cash to cover a year of emergency expenses, and researchers estimate retirees need roughly 10% of annual income set aside for emergencies.

A single fall, stroke or new diagnosis can quickly create financial pressure for seniors and their families. Advisers who work with older adults say care costs often outpace fixed retirement incomes and savings. A study by the Center for Retirement Research found about 58% of U.S. seniors have enough cash to cover a year of emergency expenses. As Canada becomes a super-aged nation, experts are questioning preparedness for these shocks. Key facts: - The Boston College Center for Retirement Research study reported roughly 58% of U.S. seniors have sufficient cash to cover emergency expenses for one year. - Researchers cited in the article estimate retirees need about 10% of their annual income set aside for emergency expenses. - Reported care costs include private in-home care at about $30–$50 an hour, public long-term care commonly running $2,000–$3,000 per month, and private long-term care that can reach higher monthly amounts. - Advisers recommend preparing legal documents such as powers of attorney and communicating care preferences in advance to help families manage decisions. Summary: Gaps between retirees' available resources and the rising costs of care could increase financial pressure on households and raise demand for private services. How Canada will respond through policy, planning or other measures is undetermined at this time.