11 Overlooked and Costly Retirement Expenses

1. Health insurance

Monkey Business Images / Shutterstock.com

You’ll have Medicare in retirement, so you don’t need to worry about health insurance, right? Not exactly.

First, if you retire early, you’ll need to buy your own health care coverage for a few years. Unless you qualify because of a disability, you won’t be eligible for Medicare — the federal health insurance program primarily reserved for seniors — until you’re 65.

Next, Medicare doesn’t mean totally free health care, as we’ve detailed in stories like “5 Health Care Costs That Medicare Does Not Cover.”

In fact, for many Medicare recipients, recurring costs like premiums and deductibles tend to rise each year.

Some seniors have the option to buy a supplemental Medicare health insurance plan, also known as a Medigap policy, to cover some out-of-pocket costs. But even if it saves you more money than it costs you, a Medigap policy is still an expense in itself.

How much this retirement expense costs: U.S. households led by someone who is age 65 or older spent $6,802 on health care in 2018, on average, according to the Bureau of Labor Statistics.

Beware These 5 Common Work-From-Home Scams
Beware These 5 Common Work-From-Home Scams

You can spot scammers and con artists with a little know-how.

Never Buy These 12 Things at a Thrift Store
Never Buy These 12 Things at a Thrift Store

Sometimes a great deal is not worth it — or, even worse, is dangerous.

11 Secret Uses for Everyday Items That Will Save You Money
11 Secret Uses for Everyday Items That Will Save You Money

These are simple solutions for life’s irritations.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.