Mistake No. 1: Failing to plan for medical expenses
Medicare kicks in at age 65, but that’s not the end of your medical expenses. Fidelity estimates a couple, both age 65, who retire in 2018 will need $280,000 of their own money for medical expenses over the course of retirement. Such costs include deductibles for Medicare Part A and Part B (in-patient and out-patient insurance), and premiums and out-of-pocket costs for Medicare Part D prescription drug coverage.
- Read “The ABCs of Selecting a Medicare Supplement Plan.” If you have further questions, call your state insurance commissioner’s office to get help choosing the most cost-effective Medigap plan.
- To help dodge expenses from illness and disability, exercise regularly and stay at a healthy weight.
- Check into long-term-care insurance. It’s cheaper if you sign up when you’re younger.
- Think about moving to live closer to good medical centers, hospitals and family.