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| When A Couple Retires Health Care Costs May Be High! |
Retirement planning is an important step
towards financial security. But it can be hard to figure out what you'll need
to pay for once you're retired. According to a recent study from Fidelity, a
couple needs about $300,000 to retire comfortably. That number includes health
care, housing, transportation, and other expenses. If you're not saving enough,
you could end up spending everything you've got.
If you retire at age
65, you'll need $315,000 to cover your expenses. That's according to the latest
estimates from the U.S. Department of Labor. If you're married, you'll need
about half that amount ($165,000) to cover your needs. And if you're single,
you'll need about $210,000. You may also need to save money for other goals
like traveling or buying a house.
Of course, there are
caveats, if you're healthy and live in a place where you'll get great
healthcare coverage, and if you're lucky enough to live long enough to enjoy
your retirement benefits. But the fact is that it's really important for
everyone to start saving early and often. If you wait until you retire, you
might not have any money left at all. And if you wait until you're sick, you
might not have time to save anything. You need to start saving today, and you
should plan to save regularly throughout your life.
Read More: Retirement Accounts Are Under Strain Due To Market Instability
Trust me. It's going to take a lot of time. The best advice we give people today is if you can afford it, open up an HSA. Many people don't understand how they work or haven't opened one. If you have a health insurance plan with a high deductible and what the IRS considers it to be, if you're an individual, $1,400 and for a family, up to $2,800, you can put money into these health savings accounts. (HSA) Large employers often offer their employees health insurance plans that include high deductibles.
They're savings
accounts. It's the beauty of it, indeed. You can set money away from taxes.
It's tax-free when it's set aside. You don't pay taxes on it when you take it
out of the country. It grows. It's an investment. Unlike your flexible savings
account, you don't have be using it each year. It rolls over to next year. If
you reach the end and realize you're not eligible for the full deduction
because you're over 65, you can remove the item from your tax return and use it
for other purposes. There's a catch there. You can be older than 65, but you
will still pay tax on it then.
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