During retirement, expenses like transportation may decrease, but healthcare costs typically rise. As people age, they require more care, and Medicare may not cover all services. To prepare, consider increasing contributions to retirement accounts or opening a Health Savings Account (HSA). An HSA offers tax benefits and can be used for healthcare expenses. Fidelity estimates the average 65-year-old retiring in 2025 may spend $172,500 on healthcare. Having an HSA can help cover these costs. Additionally, maximizing Social Security benefits can boost retirement income by as much as $23,760 per year. Join Stock Advisor for more insights.

Read more at Nasdaq: Worried About Healthcare Costs in Retirement? Don’t Just Pad Your IRA or 401(k).