Milliman Retiree Health Cost Index: A 65-year-old couple needs $418,000 in savings for healthcare in retirement

Milliman Retiree Health Cost Index: A 65-year-old couple needs $418,000 in savings for healthcare in retirement

Milliman, Inc., a premier consulting and actuarial firm, today released its 2026 Retiree Health Cost Index (RHCI), which projects how much money a healthy 65-year-old can expect to spend on healthcare in retirement. The index explains how factors like where a person lives, when they retire, and which coverage they choose can impact the total cost of premiums and out-of-pocket expenses.

For 2026, we project a healthy 65-year-old couple retiring this year will need to save on average:

$418,000 under Original Medicare with Medigap Plan G plus Part D coverage (Medigap), an increase of $30,000 (+7.7%) from 2025. The couple is projected to spend an average of $637,000 on healthcare expenses over the course of their remaining lifetime.

$211,000 with Medicare Advantage plus Part D (MAPD), an increase of $28,000 (+15.3%) from 2025. The couple is projected to spend an average of $320,000 on healthcare expenses over the course of their remaining lifetime.