When saving for retirement, many grossly underestimate the amount they will need for medical expenses.  If a senior is planning on using Medicare throughout retirement, he or she will need to save approximately $220,000 for co-payments, deductibles, and prescriptions.  So, how does one prepare?
First, talk to a financial planner.  This planner can help to organize a retirement plan that includes medical bills.  He or she can also suggest the best ways to save, specifically for healthcare costs.
Second, begin a health savings account.  People with high-deductible health plans usually begin contributing to these accounts when they are younger and healthier.  The accounts roll over from year to year and are tax-free.  Even the withdrawals are not taxed

as long as the money is spent on healthcare.  If the person is generally healthy, he or she can save the majority of the savings for retirement.
Third, consider an annuity.  A deferred annuity can be a valuable investment tool to cover future medical bills.  With this, the senior will put away a large amount of savings for later guaranteed annual payments.  It can be set up so that a set sum, such as $10,000, is withdrawn annually to cover the healthcare expenses for each year of retirement.  An annuity can be very complicated and would be something to discuss with your financial planner.
Arranging for retirement is a huge task, so make sure that healthcare costs aren’t forgotten or underestimated.  Planning ahead now could save some future headaches.