For many baby boomers, the years just before retirement present their best opportunity to save a significant amount of money for retirement. They may be making more money than they ever have in their career. Additionally, their kids may be out of the house and out of school, reducing expenses and freeing up cash flow to put in savings.
If you’re approaching retirement, you’re probably assuming that most of your health care costs will be covered by Medicare. To a certain extent, that assumption is correct. The combinations of Medicare parts A and B cover a large portion of hospitalizations and trips to the doctor’s office. Part D covers a substantial share of prescription drug costs.