Considering that health-care and long-term care costs could add hundreds of thousands of dollars to the overall cost of retirement, the best course of action is to get familiar with the additional outlay and save accordingly.
Estimates from the Employee Benefit Research Institute show that a 65-year-old man would need to save an additional $127,000 in order to have a 90 percent chance of paying for medical costs. A woman of the same age would need to boost her savings by $143,000, according to EBRI's analysis.
Those with high prescription drug costs will need even more money to make sure they can meet those expenses. EBRI's research reveals that married couples with these additional drug expenses will need as much as $350,000 to fund health-care costs in retirement — even if they are Medicare beneficiaries. This number excludes long-term care.
"Take a look at your own savings and investments, and be invested in a way that allows you to sleep at night and accommodate for these costs," said Eckert.
"You want to make sure you don't wake up at 65 with this looming cost you haven't accounted for," she said.