Healthcare Costs in Retirement
Healthcare is often the largest expense retirees underestimate. Explore data on Medicare costs, out-of-pocket expenses, and long-term care projections to help plan your retirement healthcare budget.
$315,000
Lifetime Cost (Couple 65+)
$7,500
Avg Annual Out-of-Pocket
5.9%
Annual Healthcare Inflation
70%
Will Need Long-Term Care
Typical Healthcare Costs in Retirement
| Category | Cost | Notes |
|---|---|---|
| Lifetime Healthcare Costs (Couple) | $315,000 | Ages 65+ excluding long-term care |
| Medicare Part B Premium (2024) | $174.70/mo | Standard premium |
| Medicare Part D (Drug Coverage) | $55/mo avg | Varies by plan |
| Medigap/Supplement Premium | $150-300/mo | Varies by plan type |
| Annual Out-of-Pocket Costs | $6,500-8,500 | Per person average |
Source: Fidelity Retiree Health Care Cost Estimate, Medicare.gov, KFF
Long-Term Care Costs (National Average)
| Care Type | Monthly Cost | Annual Cost |
|---|---|---|
| Nursing Home (Private Room) | $9,733 | $116,800 |
| Nursing Home (Semi-Private) | $8,669 | $104,025 |
| Assisted Living Facility | $4,807 | $57,684 |
| Home Health Aide | $5,892 | $70,704 |
| Adult Day Care | $1,690 | $20,280 |
Source: Genworth Cost of Care Survey 2023
Out-of-Pocket Costs by Age
Ages 65-74
$6,833
Average annual out-of-pocket
Ages 75-84
$8,750
Average annual out-of-pocket
Ages 85+
$14,500
Average annual out-of-pocket
Advisor Insight
"Healthcare costs are the wild card in retirement planning. I recommend clients use a conservative estimate of $315,000-$400,000 for lifetime healthcare costs and consider strategies like HSA maximization before 65, Medicare optimization, and long-term care planning."
, Brett Henderson, Fiduciary Financial Advisor
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