Suze Orman says many Americans underestimate this critical cost in retirement — 5 steps before it's too late

Core Insights - Financial expert Suze Orman highlights that many Americans underestimate the significant costs associated with health care in retirement, particularly those related to Medicare [2][3] Group 1: Health Care Costs in Retirement - The primary overlooked expense in retirement is health care, specifically the costs associated with Medicare, which many believe will cover most medical needs [3] - Medicare Part A has a deductible of $1,676 for inpatient hospital stays in 2025, an increase from $1,632 the previous year, illustrating unexpected out-of-pocket costs [4] - The average cost of a one-day hospital stay was $3,025 in 2022, with the full average adjusted cost reaching $14,101 per inpatient stay at community hospitals [4][5] Group 2: Hospitalization Risks - Older Americans face a significant financial burden, with an additional $1,349 per day for hospital stays potentially devastating for many [5] - The likelihood of hospitalization increases with age, with a 16.9% chance for individuals aged 65-74 and a 26.1% chance for those over 85 [5] Group 3: Coverage Gaps - Original Medicare (Parts A and B) does not cover essential services such as dental, vision, and hearing, leading to potential gaps in coverage [6] - It is advised to obtain a solid Medigap policy to address these coverage gaps and mitigate financial risks associated with health care in retirement [6]