Healthcare costs are one of the largest and most unpredictable expenses in retirement. The average couple retiring today will need approximately $300,000 to cover healthcare costs throughout retirement, not including long-term care.
Medicare covers many healthcare costs but has gaps. You'll likely need supplemental insurance to cover what Medicare doesn't, including dental, vision, and hearing care. Long-term care insurance is another consideration for extended care needs.
Health Savings Accounts (HSAs) offer a triple tax advantage and can be an excellent tool for retirement healthcare planning. After age 65, you can withdraw HSA funds for any purpose without penalty, though non-medical withdrawals are subject to income tax.