Many overlook healthcare costs in retirement planning, but Suze Orman warns it’s a critical mistake. With Americans living longer, expenses could include in-home or long-term care. Fidelity Investments estimates the average 65-year-old couple will spend $12,800 on healthcare in their first year of retirement, a significant sum that could derail finances. Orman advises considering healthcare costs early on to avoid running out of money later.

Social Security enrollees can expect Medicare Part B premiums deducted from benefits, with higher earners paying even more due to IRMAAs. Orman recommends delaying Social Security until age 70 and planning for potential premium increases. She also suggests considering long-term care insurance and investing in income-generating assets to cover healthcare costs.

Orman stresses proactive health management to reduce long-term medical expenses and improve financial security. She urges planning for healthcare costs as a top priority in retirement savings, emphasizing the importance of considering longevity and medical expenses over market fluctuations. Start saving now to avoid running out of money in your later years.

Read more at Yahoo Finance: The No. 1 Retirement Mistake That Could Cost You Everything