6 months emergency funds
Do monthly pensions influence the emergency funds? Should you have the necessary funds available to you regard less of your monthly pension income.
Terry Says
Good question. Having a pension and SS check coming in are very helpful to cover basic expenses. But what about emergencies — car repair, home air conditioning or furnace breakdown, or anything else that might come up. That’s where “liquidity” really helps. If you were living day-to-day on a paycheck, then yes, 6 months is the bare minimum — in case you lose your job. But even with daily expenses covered, it is always good to have some “chicken money” in the bank!