HSA withdrawals are tax deductible provided they are used to cover eligible health care expenses. Thus, if you do well to contribute to an HSA, then while you are in Medicare, you may have a lot of money on hand to cover various out-of-pocket costs.
Make sure you allocate a budget for healthcare
One of the main reasons many Medicare enrollees struggle with their bills is that they simply aren’t prepared for the costs that lie ahead. Best bet? Read about health care expenses in retirement and do your best to save for them early.
Fidelity recently estimated that the average age of a 65-year-old heterosexual couple who is retired this year will spend an enormous amount $300,000 on health care during retirement. This amount represents the various costs that older people usually incur in the context of medical care. The more savings you take into retirement, the easier it will be to manage these costs — and avoid a scenario where you are forced to return to the job market when you don’t really want to be a part of it.
The $16,728 Social Security bonus is totally overlooked by most retirees
If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known “Social Security secrets” can help ensure a higher retirement income. For example: One easy trick can pay you up to $16,728 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.