Most Retirees Underestimate This 1 Major Expense -- Don't Be One of Them

Group 1 - The core expense that many individuals overlook when planning for retirement is healthcare costs, which can significantly impact their financial stability [4][5] - A study by Jackson Financial indicates that nearly two-thirds of pre-retired investors underestimate their future healthcare expenses [4] - Fidelity reports that the typical 65-year-old retiring in 2025 may incur out-of-pocket healthcare costs of $172,500, which is not covered by Medicare [5] Group 2 - A concerning statistic reveals that 1 in 5 Americans have never considered healthcare costs in their retirement planning, highlighting a widespread issue [5] - As retirement savings diminish due to unanticipated healthcare expenses, individuals may have to rely solely on Social Security, which may not be sufficient for their needs [6] - The rising costs of healthcare for retirees are attributed to factors such as age-related health issues and the limitations of Medicare coverage, which does not encompass all expenses [9]