Health care is one of the largest expenses for many retirees.
“Unfortunately, many people greatly underestimate how much they will need to cover out-of-pocket health care costs throughout retirement,” Smith said.
According to Financial Engines' financial literacy quiz, more than half (58%) of those 65 and over — and three-quarters (76%) of those ages 55 to 64 — believed the typical married couple retiring today at age 65 will need between $50,000 and $200,000 for health care.
According to an annual estimate by Fidelity released in April 2018, the average couple retiring at age 65 will need $280,000 for health care and medical costs, according to Time.
Smith said to keep in mind that while Medicare is a solid foundation for health care costs, it doesn’t cover everything, like routine services such as dental care, dentures, vision and hearing care, and long-term care.
"If you don’t know how health care expenses could affect your retirement or whether you’re saving enough for your future needs, talk to a financial professional," he said.