Healthcare costs

We should start with the most important aspect of retirement: the healthcare costs. They’re the easiest to overlook when it comes to planning for retirement, and failing to make a proper plan might eventually lead to undesired disaster in retirement.

Also, they usually tend to be steep. In fact, there’s one estimate from Fidelity, that proves how a 65-year-old couple retiring this year expects to spend around $315,000 on average out of their pocket only on healthcare costs during retirement.

In fact, that doesn’t even include Medicare or other long-term care costs. Luckily, there are many ways in which you can shrink your healthcare costs, like taking care of your health as much as possible and visiting your doctor for preventive check-ups.

Also, you can use Flexible Spending Accounts, or FSAs, which will automatically let you sock away as much as $3,050 in 2023, as long as there’s a pre-tax basis to be spent on all the qualifying healthcare expenses, like eyeglasses, dental care, some medications, and even doctor visits.