There are ways to prepare. If you’re eligible, enroll in a high-deductible health-care savings account (see hsafinder.com) and deposit the maximum amount every year. This year, that’s $2,850 for singles, $5,650 for couples and an additional $800 for anyone who’s 55 or older. Dig deeper into your wallet for your current health-care expenses and let the money in your HSA ride. Left to grow until you retire, it’s better than an IRA because the funds are tax-free forever if spent on health care.
If an HSA isn’t an option, just save more in an IRA or taxable account and earmark it for health care. You can invest a portion of your retirement account in a health-care industry exchange traded fund, like Vanguard Health Care Vipers (VHT), Health Care Select Sect SPDR (XLV), or the iShares S&P Global Healthcare Sector (IXJ). That way, if health-care costs keep accelerating, at least some of your money will be riding up with it.
Check out long-term-care insurance, especially if you’re older than 50, your employer helps pay for it and your state has a partnership plan to control its costs.
