2) Not Preparing for Healthcare Expenses
As you’re planning out your retirement budget, be sure to plan for potential healthcare expenses. According to Fidelity Healthcare, a retired couple will spend an average of $260,000 out-of-pocket for healthcare expenses.
If you don’t plan for these expenses, your savings could quickly be wiped out. To save money for healthcare expenses, it’s a good idea to open a Health Savings Account (HSA). To open this account, you have to have a High Deductible Health Plan, which is generally any plan that has a deductible of $1,350 or more for an individual or $2,500 or more for a family. If you qualify, you can contribute up to $3,400 a year for an individual HDHP or up to $6,750 for a family HDHP. When you save money specifically for healthcare-related expenses, you won’t have to worry about having to spend your entire nest egg on healthcare costs.