Older Workers Are Grossly Underestimating Their Retirement Healthcare Costs

It's no secret that healthcare is a major expense -- and burden -- for seniors. In fact, in a recent Nationwide survey, healthcare costs topped future retirees' list of financial concerns. Yet many older Americans are underestimating those costs in a very big way.

The average pre-retiree aged 50 and over expects healthcare in retirement to cost $7,000 a year. But in reality, that figure is $10,739, according to data cited by Nationwide.

Of course, the amount you spend on healthcare in retirement will depend on a number of factors, like the specific state of your health, the type of Medicare plan you choose, and whether you purchase supplemental insurance. But chances are, healthcare will cost more than you expect, so it pays to set aside dedicated funds to cover it once you're no longer working.

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Source Fool.com