It’s certainly nice to finally put your feet up and relax once you’ve retired.
Unfortunately, the bills just keep on coming, even though you’re no longer working.
This means you should think about your retirement funds well in advance to make sure you can still enjoy the same standard of living.
And remember, one of the most important things you’ll need as you grow older is health insurance.
How much you’ll have to put away for retirement to cover healthcare costs will really depend on your specific lifestyle and situation. According to Fidelity Investments, a married couple may need as much as $240,000, and most of this is just to cover the costs of their health care.
If you’re starting to prepare for retirement, there are several ways in which you can save on your health care costs.
There’s no time like the present
If you really want to cut your costs down there’s no need to procrastinate. Your best bet is to start putting money away now. One of the best ways to do this is to open up a health savings account (HSA). These tax-advantaged accounts are an ideal way to save money and earn interest on it while paying for qualified medical bills. Any money that isn’t used will simply stay in the account and roll over to the next year. There are numerous benefits with a HSA and those who are between 55 and 65 years of age are allowed to save an additional $1,000 each year in the account.