Healthcare costs play a critical role in retirement planning, with many individuals underestimating their potential expenses. A Fidelity Investment study indicates that the average healthcare spending for a 65-year-old retiring in 2025 may reach $165,000, a significant increase from previous years. Medians have drastically risen since 2018, predicting retirees will face overwhelming out-of-pocket costs, with couples possibly spending over $680,000 on long-term medical care. Without adequate coverage and planning, many retirees risk financial strain due to healthcare expenses.
According to a Fidelity Investment study performed in 2025, the average healthcare bill for a 65-year-old retiring in 2025 could be around $165,000, up 5% from 2023. While the math will vary depending on the source, there is no denying that more than 50% of Americans approaching retirement are expected to feel overwhelmed by costs incurred as part of Medicare and supplemental insurance.
In 2018, the median cost of a retiree's total retirement for medical care was only around 12% of savings. Today, that number has almost tripled, and groups like RBC Wealth Management even predict a far higher number than Fidelity, anticipating that a 65-year-old couple will spend over $680,000 in long-term medical costs annually.
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