Overestimate Healthcare Costs
Whether you’re just in the planning stages or you’ve already left the workforce for good, estimating your healthcare costs is a major cost to consider during retirement. A 65-year-old couple that retired in 2015 will need $245,000 to cover future medical costs — not including the cost of long-term care, according to Fidelity. Many workers and retirees are totally unprepared for this cost, which can completely wipe out their savings.
“Most people, especially healthy ones, will underestimate the potential cost of healthcare, which can be financially devastating,” said Ash Toumayants, financial advisor and president of Strong Tower Associates. “Don’t assume just because you’re healthy now that you will continue to be throughout retirement.”