Emergency expenses. The need for an emergency fund doesn't end when you retire. Appliances will break, cars and homes will require repairs and you will need to pay for these things out of your retirement savings. "Everybody needs an emergency fund, whether you are 18 or you are 90," says Andrew Feldman, a certified financial planner and president of AJ Feldman Financial in Chicago. He recommends keeping three to six months' worth of living expenses in cash or other easily accessible investments in retirement. "You don't want to have to sell your portfolio at an inopportune time to pay for an emergency."