Currently, a single person retiring in 2025 can expect to spend an average of $172,500 in health care and medical expenses throughout retirement. The latest 5 Questions with Fidelity explains how you can leverage health savings accounts (HSAs) to help you deal with ever-rising healthcare expenses. 00:00 Welcome to 5 Questions with Fidelity 00:20 What is a health savings account (HSA)? 01:56 Who is eligible for an HSA? 02:51 What are myths about HSAs? 05:16 How can HSAs help in retirement? 06:36 How can you ...

Core Insights - The article emphasizes the importance of planning for various expenses that can significantly impact retirement savings, highlighting the need for a comprehensive investment strategy as individuals approach retirement age [2] Group 1: Healthcare - Out-of-pocket healthcare expenses can be substantial even with Medicare, with many financial experts suggesting that individuals need at least $1 million saved for a comfortable retirement due to high medical costs [3] - It is recommended to have a health savings account (HSA) or similar fund for medical expenses, along with regular reviews of health insurance and consideration of supplemental insurance to mitigate costs [4] Group 2: Homeownership - Homeownership can lead to significant expenses in retirement, particularly as homes age and require costly repairs such as roof replacements or plumbing fixes [5] - Setting aside a home maintenance fund and conducting regular home inspections are advised to anticipate and manage these costs effectively [6] Group 3: Inflation - Inflation poses a risk to future savings, necessitating larger withdrawals to maintain living standards, especially if the investment portfolio relies heavily on fixed income strategies that do not keep pace with inflation [7] - To combat inflation, it is suggested to invest a portion of the portfolio in stocks that historically yield better returns than bonds and cash, while maintaining a diversified portfolio for long-term benefits [7]