I’m Suze Orman and This Is My $300,000 Retirement Must (Hint: Planning for Healthcare Is Not Optional!)
Plus, learn the ‘Goldilocks’ decade to start looking for long-term care insurance
We all dream of a relaxing, fulfilling retirement—one filled with purpose and supported by financial stability. To help make that dream a reality, we turned to money maven Suze Orman for simple, empowering strategies. Here, the host of the Women & Money podcast and author of The Ultimate Retirement Guide for 50+ addresses two of your most common concerns: managing healthcare costs in retirement and pinpointing the best way to take your pension.
Q: How can I plan for potential healthcare costs in retirement, and what options are available to manage these expenses?
Suze: Planning for healthcare in retirement is not optional—it’s essential. According to Fidelity, a 65-year-old couple retiring today may need over $300,000 just to cover health care costs in retirement. And that doesn’t even include long-term care. So the earlier you prepare, the better off you’ll be.
Start by seeing if you’re eligible for a Health Savings Account (HSA). This is one of the most powerful savings tools out there. You contribute pre-tax, your money grows tax-free and you withdraw it tax-free for qualified medical expenses—including in retirement. You can invest your HSA funds and let them grow, untouched, for decades. That’s huge.
Next, look into long-term care insurance. You want to start shopping in your 50s—not your 60s—because premiums skyrocket and your chances of being denied coverage increase as you age. Make sure your policy covers in-home care, not just nursing facilities, so you have more flexibility and dignity in how you receive the care you deserve.
Also, be realistic about what Medicare does and doesn’t cover. For example, it won’t pay for dental, vision, hearing aids or long-term custodial care. You’ll need a supplemental policy plan to fill some of those gaps.
And don’t forget about staying healthy now. The better your physical condition today, the lower your expenses will likely be down the road. That’s not just about money—it’s about your quality of life.
Lastly, make sure your retirement plan includes a line item for health care. Research actual costs based on your age and geography. And remember, the later you retire, the fewer years you’ll be paying for health care out-of-pocket before Medicare kicks in at 65.
Q: I’ll be retiring soon, and I need to know how to take my $129,000 pension. There are three ways: one lump sum; $422 monthly and half of the $129,000; or an $844 monthly benefit only. How do I know the best option?
Suze: When it comes to your pension, there is no one-size-fits-all answer. The right choice comes down to one thing: What gives you the most security and peace of mind? Let’s look at your options:
If you take the full lump sum of $129,000, roll it into an IRA. At about a 4.5 percent interest rate, that gives you roughly $484 a month. The upside? You own the money, and whatever’s left can go to your heirs. You can invest for growth if you don’t need income right away. But here’s the truth: You take on all the risk, and eventually, you must take Required Minimum Distributions (RMDs), whether you want to or not.
Now, the 50/50 option: You get $422 a month in guaranteed income. That’s almost the same as what you could create if you invested the lump sum yourself. But you also keep about $64,500 in an IRA. That money can grow, be your emergency cushion or go to your heirs. The $422 never changes, which means inflation will eat away at it. But the IRA side can help balance that out.
Finally, let’s look at the $844 monthly benefit option. This is like locking in a 7.8 percent return for life. It never changes. You never worry about RMDs. You don’t worry about markets. The tradeoff? When you die, the checks stop. There is nothing left for your heirs. And inflation will chip away at what $844 buys over the years. So, what do you do? Ask yourself three key questions:
- Do I need maximum guaranteed income to cover essentials? Then $844 a month is your best choice.
- Do I want some guaranteed income, but also money that I can touch, invest or leave to my kids? Then 50/50 gives you balance.=
- Do I want total control and the largest inheritance potential? Then the lump sum is for you. The bottom line: There is no wrong answer—only the answer that fits your life today and your courage for tomorrow.
Portions of this story first appeared in the September 22, 2025 and January 12, 2026 issues of Woman’s World magazine
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