No matter when you plan on retiring, health care costs impact your budget at every stage of life. Some things to consider are:
40s
- Maximize employer benefits
- Maximize health savings account (HSA) contributions for retirement saving
- Evaluate health care needs
50s
- Make catch-up HSA contributions starting at age 55
- Evaluate early retirement health care needs
- Evaluate health care needs
- Maximize HSA contributions
60s
- Continue HSA catch-up contributions until age 65
- Evaluate early retirement health care needs
- Use HSA savings to pay for long-term care or COBRA premiums
65+
- Choose a Medicare plan
- Sign up for Medicare Part D prescription drug coverage
- Understand retiree coverage from employer
- Use HSA savings to pay for Medicare premiums and out-of-pocket expenses
How will health care costs affect your retirement savings?