Not Planning for Medical Expenses

Healthcare can be one of the biggest costs in retirement. No wonder, when the price tag is in the several hundred thousand range.

For example, according to a 2019 study, a 65-year-old couple retiring in 2019 was expected to pay around $285,000 in healthcare and medical expenses throughout retirement. “Retirees, in addition to most consumers, seem to underestimate how much they will need for health expenses in retirement, including premium and out-of-pocket costs,” says Chad Wilkins, president of HSA Bank.

Most people aged 65 and older estimate they would need less than $100,000 for health care when in reality males 65 and older will require around $133,000 while females around $147,000 to cover for healthcare in retirement.