Building an emergency fund in retirement is crucial because unexpected expenses can arise at any time. Having a financial cushion can help seniors cover these costs without having to dip into their retirement savings, which are meant to last for the long term.

Financial experts recommend setting aside at least three to six months’ worth of living expenses in an emergency fund. Seniors may want to consider saving even more, depending on their individual circumstances and risk tolerance.

Some essential tips for seniors looking to build an emergency fund in retirement include setting a specific savings goal, automating contributions to the fund, cutting unnecessary expenses, and considering a high-yield savings account for better returns.

Seniors can protect their emergency fund from inflation by investing a portion of it in low-risk, interest-bearing accounts or assets that have the potential to outpace inflation over time. It’s important to strike a balance between safety and growth when considering investment options.