Americans retiring in 2026 may need significantly more savings to cover healthcare, as a 65-year-old is expected to spend an average of $185,500 on medical expenses throughout retirement, according to Fidelity Investments' 25th annual Retiree Health Care Cost Estimate released this week.
The estimate, up 7.5% from a year earlier, reflects rising healthcare prices, increased utilization of medical services and growing costs associated with chronic conditions.
The estimate is designed as a long-term planning benchmark for retirees enrolled in Original Medicare Parts A and B and Medicare Part D.
It includes Medicare premiums, copayments, coinsurance, deductibles and out-of-pocket prescription drug costs, but does not include long-term care expenses.
Cost Breakdown Fidelity said Medicare Parts B and D premiums account for about 45% of the projected healthcare costs, while other medical expenses, including deductibles, copayments, coinsurance and services not fully covered by Medicare, account for 48%.
