Retirement Healthcare Costs Top $172,500 for 65-Year-Olds, Fidelity Reports
A 65-year-old retiree today can expect to spend over $172,500 on healthcare expenses throughout retirement, according to Fidelity Investments’ 2025 Retiree Health Care Cost Estimate. That’s a 4% increase from last year, and more than double the cost estimated back in 2002.
💬 “Year after year, so many Americans underestimate how much they’ll need to save to cover health care costs in retirement,” said Shams Talib, head of Fidelity Workplace Consulting.
Why These Numbers Matter
Fidelity’s estimate includes premiums and out-of-pocket costs for Medicare Parts A, B, and D, covering hospital care, medical services, and prescription drugs. However, it does not include long-term care.
While 37% of Americans say they’ll rely solely on Medicare, the reality is that retirees are still responsible for:
- Medicare premiums and deductibles
- Over-the-counter medications
- Dental and vision expenses
- Supplemental insurance plans
- Unexpected medical procedures
- Potential long-term care
And with retirement confidence slipping—especially among Gen X, it’s more critical than ever to plan ahead.
How to Prepare for Healthcare Costs in Retirement
Failing to account for medical expenses in retirement can derail your financial goals. Take these steps to stay ahead:
âś… Review Medicare and Supplement Plans
Ensure you’re enrolled in the right Medicare coverage for your lifestyle and health needs.
âś… Maximize Your HSA Contributions
Health Savings Accounts (HSAs) offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
âś… Build Healthcare Into Your Retirement Plan
Don’t treat medical costs as an afterthought. Incorporate them now so you can avoid nasty surprises later.
Don’t Leave Your Retirement to Chance
Healthcare costs are climbing, and waiting even one more year to plan could mean paying thousands more. I help individuals and families create tax-smart, healthcare-conscious retirement strategies so you can:
- âś… Retire with confidence
- âś… Protect your savings from unexpected medical bills
- âś… Avoid becoming a financial burden to your loved ones
đź“ž Book your free Retirement Clarity Call today and make sure your retirement plan is ready for the real costs ahead.
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