Fidelity Investments® Shares 25th Annual Retiree Health Care Cost Estimate, Highlighting the Importance of Incorporating Potential Health Expenses in Retirement Planning
Increasing retirement confidence driven by awareness of and preparation for health care costs
Fidelity Investments® today released its 25th annual Retiree Health Care Cost Estimate, revealing a 65-year-old retiring in 2026 can expect to spend an average of $185,500 on health care and medical expenses throughout retirement1. Up 7.5% from one year ago, the increase reinforces broader health care market trends, including rising prices for care, continued utilization growth, and growing costs tied to chronic conditions2.
Despite the rise, this year’s estimate comes on the heels of positive news, as recent Fidelity research finds Americans’ retirement confidence is trending up: 72% say they will retire on their own terms, and nearly 3-in-4 say they have a plan in place to reach their retirement goals. This confidence is driven in part by awareness and preparation. The vast majority (81%) understand health care costs in retirement to be high, and one-quarter (26%) identify health care costs as a top retirement savings challenge.3
