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Commonly Overlooked Healthcare Expenses

| August 23, 2023

Retirement planning is essential to financial security in the latter half of life. An area that usually gets overlooked is healthcare expenses. While healthcare is necessary for retirees, it can often be the most significant unknown. The fear created around this unknown cost can be daunting but can be adequately overcome with proper planning.

Rising healthcare costs are becoming a large part of retirement planning and will continue to be in the future. An average retired couple at age 64 should expect to have $315,000 to cover healthcare expenses during retirement1. These expenses can be applied to your long-term care, housing changes, growing medical concerns, etc. Planning for these costs in advance can secure a nest egg for you and your family to fall safely on, should you come across healthcare that needs this attention.

One way to combat this is by utilizing a Health savings account (HSA). These tax-advantaged accounts can help save money that will go towards healthcare expenses. Using your HSA as a savings tool encourages growth, and when you retire, you can reimburse yourself for past expenses.

Another consideration is the role that Medicare can play in your retirement to help with healthcare expenses. If you decide to retire early, this could greatly affect your healthcare coverage and when Medicare will kick in. Before you make the decision on exactly what age to retire, it’ll be important to understand your exact coverage plans, the changes that will occur when you retire, and additional options that you might need to look into should your coverage plans change.

Although some healthcare costs are out of our control, maintaining a healthy lifestyle and scheduling regular appointments can help you take control of possible health risks. Focusing on prevention and early detection can help increase the knowledge surrounding your health, and possible your quality of life. With a combination of planning savvy and health maintenance, you’ll be be prepared to face your retirement with financial confidence.


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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability ofthe issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.