- by C.C.
Your Healthcare Will Cost More Than You Expect
The average couple retiring in 2016 at 65 will spend $280,000 on medical costs in retirement, according to a report by Fidelity. And not all those expenses will be covered by Medicare.
“A health savings account, or HSA, can be a huge help when it comes to preparing for those healthcare costs in retirement,” said Jody Dietel, chief compliance officer with employee-benefits provider WageWorks. When paired with a high-deductible healthcare plan, HSA contributions are made tax free, the balance accrues tax free and withdrawals are made tax free, Dietel said.
“The account can build a healthy nest egg that can save you from having to pull from your 401k for those unforeseen healthcare costs,” said Dietel.