By Gregg Gonzalez, CFP®
When you picture your ideal retirement, you may imagine travel, hobbies, and time with family, not medical bills or caregiving concerns. But the reality is, healthcare and long-term care are among the biggest (and most underestimated) expenses in retirement.
For women, the impact is even greater. With longer life expectancies and a higher likelihood of living alone later in life, women often face increased healthcare needs and costs. That’s why proactive planning is essential, not just for your finances, but for your confidence.
1. Understand the True Cost of Healthcare in Retirement
According to Fidelity, the average 65-year-old woman retiring today can expect to spend over $150,000–$200,000 on healthcare throughout retirement (and that doesn’t include long-term care.)
Start with:
- Estimating annual out-of-pocket healthcare costs (premiums, co-pays, prescriptions).
- Understanding what Medicare covers (and what it doesn’t.)
- Exploring supplemental plans like Medigap or Medicare Advantage.
2. Plan for Long-Term Care…Before You Need It
Nearly 70% of adults over age 65 will need some form of long-term care, and women are more likely to require it for longer durations. This care, whether at home, in assisted living, or a nursing facility, isn’t covered by Medicare.
Proactive steps:
- Consider long-term care insurance in your 50s or early 60s, when premiums are lower and health eligibility is easier.
- Explore hybrid insurance policies that combine life insurance with long-term care benefits.
- Talk to a financial advisor about building a care fund into your retirement plan.
3. Use HSAs and Tax-Advantaged Accounts Wisely
A Health Savings Account (HSA) is one of the most powerful tools for retirement healthcare planning, if you’re eligible. Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
HSA tips:
- Max out contributions while you’re still working.
- Use other funds for current expenses and let your HSA grow for future use.
- In retirement, use it for Medicare premiums, long-term care costs, and more.
4. Communicate Your Care Preferences
Planning isn’t just about the money; it’s about control and dignity.
Make sure you:
- Have an advance directive and healthcare power of attorney in place.
- Talk with your loved ones about your wishes for care, living arrangements, and quality of life.
- Review these documents regularly and keep copies in accessible locations.
5. Consider Who Will Be Your Care Advocate
Many women serve as caregivers but may not think ahead to who will care for them. Whether you have family nearby or not, it’s important to identify someone who can help you manage care if the time comes.
Think about:
- A trusted adult child, sibling, or friend.
- Hiring a professional care manager or trustee if needed.
- Including caregiving costs and support systems in your financial plan.
Protecting Your Health = Protecting Your Wealth
The cost of care shouldn’t be an afterthought. By planning now, you can preserve your independence, protect your savings, and ensure that your retirement years are spent in comfort, not in crisis.
Let’s create a plan that supports the life – and care – you deserve.
Reach out today for a personalized healthcare and long-term care strategy that gives you confidence for the future.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
