#3: Neglecting Healthcare Needs
The average 65-year-old couple retiring today would need $220,000 to $360,000 just to cover healthcare expenses. Yet the median retirement savings for those 10 years from retirement is just $12,000. That’s $24,000 for a couple nearing retirement to rely on, which isn’t a trend you want to follow.
If you have a high-deductible health plan (HDHP), one strategy is to pump as much money as possible into a health savings account (HSA), which allows tax-free contributions and withdrawals for healthcare expenses. Such an account can be rolled over from year to year.
If that’s not possible, earmark part of your retirement savings for healthcare. Only about one-third of current retirees do so – another group you don’t want to join.
Also, discuss healthcare expenses with a financial planner for expert advice on your specific situation.