Health Cost Shock in Retirement

Executive summary

Out-of-pocket health costs in retirement average $300k+ per couple, with variance much higher. Resilient retirees pre-fund the range.

• Use HSA as long-term retirement vehicle
• Plan for Medigap + Part D + dental separately
• Reserve for IRMAA surcharges

Key takeaways

• Use HSA as long-term retirement vehicle
• Plan for Medigap + Part D + dental separately
• Reserve for IRMAA surcharges
• Budget LTC separately from health

Key strategies

1. Strategy 1

   Use HSA as long-term retirement vehicle

2. Strategy 2

   Plan for Medigap + Part D + dental separately

3. Strategy 3

   Reserve for IRMAA surcharges

4. Strategy 4

   Budget LTC separately from health

Pro-tips checklist

• Don't spend the HSA until retirement if possible
• Document medical receipts for tax-free distributions later

FAQ