‘Listen up’: Suze Orman says too many Americans underestimate this cost in retirement. 5 ways to get ahead of it

Core Insights - The article emphasizes the often underestimated costs associated with Medicare, particularly healthcare expenses that retirees need to plan for, which can lead to significant out-of-pocket costs [4][9]. Medicare Costs - Medicare Part A has a deductible of $1,736 for inpatient hospital stays in 2026, an increase from $1,676 in 2025, while the average cost of a one-day hospital stay was $3,297 in 2024 [1][6]. - The average adjusted cost for an inpatient stay at community hospitals is $14,101, highlighting the financial burden on retirees [1]. Financial Planning for Healthcare - Financial experts warn that healthcare is the most unpredictable expense for retirees, as Medicare does not cover all medical needs, leading to additional costs for out-of-pocket expenses, deductibles, and long-term care [2][3]. - Fidelity Investments estimates that a retired couple will need approximately $345,000 to cover healthcare costs after age 65, underscoring the necessity of planning for these expenses [9]. Strategies for Managing Healthcare Costs - Recommendations include building a Health Savings Account (HSA) for tax advantages, setting up a dedicated health emergency fund, and considering long-term care insurance to protect against high costs [11][12][16]. - It is advised to obtain a robust Medigap policy to cover gaps in Medicare, as Original Medicare does not cover essential services like dental, vision, and hearing [7][8][21]. Income Management - Reducing modified adjusted gross income (MAGI) can help lower Medicare premiums, with strategies such as Roth conversions and charitable giving suggested for those nearing retirement [18][19].