Retirees face rising healthcare costs, with Fidelity estimating a 65-year-old retiring in 2025 will spend $172,500 in out-of-pocket expenses throughout retirement, excluding long-term care. Medical costs have doubled since 2002. Monthly Part B premiums increased to $185 in 2025. Planning for healthcare expenses is crucial, yet often overlooked, according to Fidelity.

Long-term care costs are a concern, with 80% of those 65+ needing care and costs rising as residents age. An apartment in an assisted-living facility can cost over $74,000 a year, with dementia units costing more. Younger workers can prepare for future costs by investing in Health Savings Accounts (HSAs) to cover qualified healthcare expenses tax-free.

HSAs allow tax-free contributions, growth, and withdrawals for healthcare. The 2025 contribution limit is $4,300 for individuals and $8,550 for families. Many account holders use HSAs like checking accounts, missing out on investment opportunities. Only 3.2 million HSAs have invested dollars, with most leaving funds in cash or using them for current bills.

Read more at Yahoo Finance: Retirees’ out-of-pocket healthcare costs are spiraling