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Underestimating Health-Care Costs

Sooner or later, most Americans are taken surprise by a high co-pay charge, or prescription fee. This only gets more common — and more scary — as you grow older.

What to do: According to Fidelity, retired couples need an average of $10,750 per year to cover out-of-pocket medical expenses. This is 4 percent more than those who retired a year ago. When computing what you need for retirement, plan accordingly. Increase your contributions to your 401(k) or other workplace savings plans. If you have already maxed out your workplace savings plan, save additional money in an IRA.

Photo: Don Bayley | Stockbyte | Getty Images