No retirement plan is complete without allowing for healthcare. We all hope to remain healthy in our old age, but you can't be sure. And a single unplanned medical expense could cost thousands of dollars, forcing you to drain your retirement savings faster than anticipated.
Medicare is an integral part of most retirees' healthcare plans, but many rely upon it too much. According to TD Ameritrade, 44% of people believe it will cover the bulk of their medical expenses in retirement, but this may be overly optimistic. Medicare, like all health insurance, charges premiums and deductibles, and there are some services it doesn't cover at all. If you don't have the savings to cover these out-of-pocket costs, you could be in trouble. Below, I explain Medicare's costs and benefits and the role it should play in your retirement healthcare plan.