Suze Orman’s Emergency Fund Rule May Not Make Sense for All Retirees. Here’s What to Do Instead

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Retirement Share Share Close Mail Page URL https://money.com/suze-orman-emergency-fund-rule-retirees/ Link copied! Suze Orman's Emergency Fund Rule May Not Make Sense for All Retirees. Here's What to Do Instead By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: 6 Financial Regrets Retirees Face — and How to Avoid Them How to Move Money From Your 401(k) Into Gold Without Paying Penalties 3 Signs You’re Withdrawing Too Much From Your Retirement Accounts The Hidden Tax Trap Waiting for Retirees — and How to Avoid It Your 2026 Social Security Playbook: 5 Moves to Make Before Filing See full bio Published: Mar 24, 2026 4 min read Getty Images Suze Orman has regularly suggested having enough money in your emergency savings fund to cover your expenses for eight to 12 months. While that advice may still make sense for a lot of retirees, you shouldn’t automatically assume it’s the best choice for you. Some retirees may need to have even more cash set aside and some — including those who have predictable income streams and may be less reliant on emergency funds — may need less. Where you keep your emergency savings also matters. Traditional savings accounts earn very little interest, and it’s important to grow your money even after you stop working. Must ReadExperts are Bullish on Gold — Here's How to Get InGold Is Holding Steady as the Iran War Continues On — Here’s How Some Investors Are Getting Exposure Why the standard rule may not apply Orman’s rule of saving enough money for your essentials for eight months to one year is for people of all walks of life. But retirees need to think about their unique positions. Retirees likely are no longer worried about suddenly losing their income due to becoming unemployed. They also may have new income streams, such as Social Security and pensions. Depending on their situation, Orman’s rule of thumb may not apply to them. On the other hand, many financial advisors say to bump up cash-like savings to one to three years to account for the potential for surprise health bills and other costs that can pop up when you no longer have a steady paycheck. It’s important to consider your personal situation and determine what makes sense for you. Where to keep savings You don’t need all of your money in a high-yield savings account, but it’s still good to have some liquid cash. Taking a tiered approach with your liquidity can boost your cash flow and result in higher yields. For example, the first tier could be a high-yield savings account that can hold up to six months of your living expenses. Then, the remaining funds can go into accessible but working assets like money market funds, Treasuries and certificates of deposit (CDs) with short-term maturities. From there, you can keep investing the money not in your emergency fund to other bonds and stocks. Having more assets growing over an extended period of time will better prepare you for the real risk of retirement: a large, unexpected expense like medical bills or home repair.

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