Healthcare Costs in Retirement: How to Plan and Protect Your Savings
What Are Healthcare Costs in Retirement?
Many people have a clear vision of their ideal retirement — a vacation home in a warm climate, more time with grandchildren, or finally traveling. These dreams come with a price tag, and it’s easy to plan for the fun parts of retirement while overlooking one of the biggest expenses: health care.
Retirement healthcare costs are the medical, insurance, and out-of-pocket expenses retirees pay throughout retirement — including Medicare premiums, deductibles, prescription drugs, and routine care not fully covered by insurance.
How Much Do Healthcare Expenses in Retirement Actually Cost?
Healthcare expenses in retirement are higher than most people expect, and they’ve been rising steadily for years.
According to Fidelity’s 2025 Retiree Health Care Cost Estimate, a single 65-year-old retiring today can expect to spend an average of $172,500 on health care throughout retirement. For a married couple, that figure rises to approximately $345,000 — and neither estimate includes the cost of long-term care.
The good news: while you can’t control every health outcome, retirement healthcare planning can meaningfully reduce your risk of unexpected costs derailing your financial plan.
Planning for Healthcare Costs in Retirement: 5 Key Steps
You won’t have total control over your health in retirement, but there’s a lot you can do to manage your health risks — and the costs that come with them.
1. Stay Informed
Medical guidance changes as new research emerges. Keep up with health care news, especially on issues that have affected you or your family, and ask your doctor to help you identify any personal areas of concern.
2. Build (or Maintain) a Healthy Lifestyle
This comes down to the basics:
- Eat well — limit fats and sugars, and increase whole grains, fruits, and vegetables
- Exercise regularly, starting slowly if it’s been a while
- Talk to your doctor before beginning any new fitness program
3. Manage Stress
Stress can take a real toll on your health. Staying socially active, maintaining friendships, and making time for hobbies are linked to:
- Lower stress levels
- Reduced risk of depression
- Lower incidence of Alzheimer’s disease
4. Know Your Numbers
Staying on top of a few key health metrics can help you catch problems early:
- Blood pressure
- Cholesterol
- Body mass index (BMI)
- Blood sugar level (an indicator of type 2 diabetes risk)
Your doctor can run simple tests to check these numbers and flag any areas of concern.
5. Take Advantage of Preventive Care
Preventing an illness is almost always less expensive than treating one. As recommended by your doctor, make use of:
- Diabetes and heart disease screenings
- Mammograms
- Vaccinations
- Your annual physical
Why Retirement Health Care Planning Matters
There’s no way to guarantee you won’t face unexpected health care costs in retirement. But by building healthy habits now and factoring realistic healthcare expenses into your retirement plan, you can reduce the odds of medical costs disrupting your other retirement goals — whether that’s the vacation home, time with family, or simply financial peace of mind.
If you’re working with a fee-only fiduciary advisor near Fort Myers, Florida, healthcare cost planning is a conversation worth having early, since Florida’s large retiree population makes Medicare gaps and long-term care costs an especially common planning concern.
Frequently Asked Questions
How much should I budget for healthcare costs in retirement?
Recent estimates suggest a single 65-year-old retiring today may need around $172,500 for health care throughout retirement, while a couple may need closer to $345,000. These figures don’t include long-term care costs and can vary based on health, location, and longevity.
Does Medicare cover all retirement medical expenses?
No. Medicare covers a significant portion of health care costs but doesn’t cover everything — retirees still face premiums, deductibles, coinsurance, and out-of-pocket costs for services Medicare doesn’t fully cover.
Can a healthy lifestyle actually reduce my healthcare costs in retirement?
Yes. While you can’t eliminate all health risks, eating well, exercising, managing stress, staying socially active, and getting preventive care can all help reduce the likelihood and severity of costly health issues later in life.
What’s the difference between routine healthcare costs and long-term care costs?
Routine healthcare expenses cover things like doctor visits, prescriptions, and insurance premiums. Long-term care — such as nursing home or assisted living costs — is typically separate and not included in most standard retirement healthcare cost estimates.
When should I start planning for healthcare costs in retirement?
The earlier, the better. Starting retirement healthcare planning well before you retire gives you more time to build savings, understand your Medicare options, and adjust your overall financial plan accordingly.
This material is developed from sources believed to be providing accurate information. It is not intended as tax or legal advice and may not be used to avoid federal tax penalties. Please consult a legal or tax professional regarding your individual situation. The opinions expressed are for general information only and should not be considered a solicitation for the purchase or sale of any security.
