5 Biggest Expenses for Retirees and How to Minimize Them

3. Healthcare

Insider Monkey Score: 19

As retirees age, they will find healthcare expenditure to become more and more significant in their lives. Moreover, due to the rising costs of medical services, prescription medications, and long-term care needs, retirees often face a significant financial burden on their fixed incomes. “Health care costs tend to increase two or three times faster than the (cost of living) increases in Social Security income,” said Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, a nonprofit advocacy group. Retirees can utilize preventive care services to maintain health, explore assistance programs, and explore supplemental insurance options. Another thing they can do is to maintain a healthy lifestyle to prevent chronic conditions and minimize healthcare costs over time.