9 Retirement Decisions That Can Ruin You Financially

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.