Author: Maurie Backman, The Motley Fool

If you’re new to Medicare, or are planning to enroll in the near future, it’s imperative that you understand how the program works and what it costs. Not only is Medicare NOT free, but your out-of-pocket healthcare costs in retirement could wind up being far more substantial than you’d think due to the number of services Medicare doesn’t cover.

There’s no question about it: Saving aggressively for retirement requires you to give up certain things that could make your life easier or more enjoyable. But if you’re willing to make those sacrifices, you’ll be in a much stronger place financially once your golden years roll around.

The more prepared you are, the less likely you are to suffer a long-term financial hit in its aftermath.

If you’re one of them, consider this an important wake-up call.

Want to know what goes into your benefits? Here’s your answer.