Future-Proof Your Finances: Tackling Healthcare Costs

ARTICLE | February 07, 2025

Authored by Vasquez + Company

As people approach retirement, one financial worry that often looms large is the anticipated cost of medical care. Research shows that a 65-year-old spouse or single retiree may spend six figures on out-of-pocket medical expenses over the course of their retirement, and that amount continues to rise year after year. Moreover, long-term care, such as extended nursing home stays or assisted living, can add substantially more to your total expenses, increasing the risk of quickly depleting retirement savings. The reality of these escalating costs illustrates why it’s important to be proactive well before you leave the workforce.

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Regardless of your current health, remember that preparing for unexpected events is just as critical as saving for known expenses. Building flexibility into your plan is essential. It may mean contributing more to your 401(k) in a particular year or diverting extra funds into an HSA so you can meet a higher deductible without derailing your portfolio. The key takeaway is that you’re not powerless against healthcare costs—solid foresight, proper insurance, and diligent saving can safeguard the goals you’ve worked so hard to achieve.

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