3. You figure your healthcare costs will drop under Medicare
That’s yet another reason it pays to tweak your retirement plan — namely, by ramping up on the savings front. Even if Social Security isn’t cut, you should still only plan on having it provide some of your retirement income, not all of it.
Seniors on Medicare are liable for a number of costs, from premiums to deductibles to copays. Plus, there are some essential services that Medicare doesn’t pay for, like dental care and eye exams.
Many people assume that once they enroll in Medicare, their healthcare costs will become far more manageable. Often, the opposite happens.
If you’re planning to spend less money on healthcare during retirement, you’d better rerun some numbers. Fidelity estimates that the average 65-year-old man retiring this year will spend $143,000 on medical care, while the average 65-year-old woman will spend $157,000.