Americans Expect to Spend 40% of Their Retirement Savings on Healthcare. Are They Right?

by Maurie Backman (TMFBookNerd) | Originally posted on The Motley Fool

It's no secret that medical care is expensive. But will it end up costing more than you anticipate during your senior years?

There's a reason we're told to sock away money for the future and not rely solely on Social Security during retirement. Senior living costs can be more expensive than anticipated, so having money in savings could spell the difference between struggling and paying the bills with relative ease.

Of the various costs seniors face, healthcare is the one expense that's likely to rise during retirement. Not only do health issues tend to emerge with age, but Medicare has a number of gaps that leave seniors on the hook for tremendous out-of-pocket costs.

It's not surprising, then, to learn that Americans expect to spend a whopping 40% of their retirement savings on medical expenses alone, according to HSA provider Lively. But are they spot on?