5. Paying for medical services
When it comes to saving money for retirement, it can be a difficult task, and it can become even more stressful if you add the taxes for medical care. According to Fidelity Investments’ annual retiree healthcare cost estimate, couples after the age of 60 spend a lot on their healthcare in retirement.
“Large, debilitating medical expenses can decimate your savings,” said personal finance writer Elizabeth Colegrove. People who are on the edge of retirement should invest in a health savings account, she advises. Another way to gain more money is an HSA which permits people to pay for qualified medical care tax-free.
