Approaching retirement age? The good news is you're no longer responsible for your kids' health care expenses, but you’re likely to start needing more health care. Have you budgeted enough for your future health care needs?

Why you need a health budget
No matter how well you've planned for retirement, if you're like most people, you didn't expect health care costs to skyrocket as they have the past few years. If you haven't already created a family health budget, now is the perfect time to do so. Here's why: your use of health care is going to increase. While you're still working, you have more opportunity to put money in the bank for rising health care expenses as you get older. So build a budget now – and while you’re setting aside money for current expenses, be sure to build a nest egg for future health care costs, too.

What about Medicare and Retiree Benefits?
No doubt about it, Medicare and retiree benefits (if you're fortunate enough to receive them) are a big help for meeting health care expenses. Even with Medicare, it's likely you will still have some costs that you'll be responsible for. How much? Use the Family Health Budget to find out.

Look into a health care spending account
One of the simplest ways to save money on health care expenses is to open a Health Savings Account. These accounts let you use tax-free income to pay for health care products and services. Because you're using money that hasn't been taxed, it's like getting a discount on things you need anyway. Many people find funding an HSA is an excellent way to "catch up" on building a nest egg to cover their future health care needs.

There are some catches to these accounts. For example, you can draw funds from your HSA while you're on Medicare, but you can't contribute to it once you start receiving Medicare funds. Ask your financial or health insurance advisor for more information about these accounts.