7 Inflation-Fighting Strategies for Clients in or Near Retirement

5. Plan for health care expenses.

Even under more normal inflationary conditions, health care costs are a major expense for retirees. Price inflation in prescription drugs and other types of medical care often outpaces the general rate of inflation.

Planning for health care expenses should be included in your planning for clients approaching retirement. This should include having them fund HSAs if they have access to one while still working. HSAs can be a huge help in funding Medicare premiums and expenses not covered by Medicare with tax-free withdrawals for qualified expenses.

For your clients who are retired, a review of Medicare or other coverage should be done annually to ensure they have the right coverage in place to help minimize their out-of-pocket expenses in light of their current needs.

In its annual survey, Fidelity Investments pegged the cost of health care for a couple aged 65 retiring in 2022 at $315,000 over the course of their retirement.

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