While Medicare will pay for doctors visits and hospital costs, it may not cover all of your prescription drug expenses and it doesn't help with long-term care.
If a 65-year-old wants a 90 percent chance of having enough savings to cover health care expenses in retirement, the average man would need to save $124,000 and the average woman would have to sock away $140,000, according to the Employee Benefit Research Institute (EBRI). These figures do not include the cost of long-term care.
Health savings accounts are an ideal way for people to save and invest for retiree medical expenses. HSAs offer you triple tax advantages: First, contributions are tax-deductible. Second, those contributions can be invested and grow tax-free. Third, withdrawals aren't taxed as long as you use them for qualified medical expenses, such as doctor's visits, prescription drugs and dental care.