Expected Healthcare Costs for a 65-Year-Old Retiring in 2025

Rising Healthcare Costs for Retirees: Fidelity estimates that a 65-year-old retiring in 2025 will spend an average of $172,500 on healthcare throughout retirement, reflecting a 4% increase from the previous year and a significant rise from the initial $80,000 estimate made 23 years ago.

Planning for Uncovered Medical Expenses: Many retirees underestimate healthcare costs, with 1 in 5 Americans not considering these needs in their retirement planning. Medicare does not cover all expenses, making it crucial for retirees to have a solid financial plan that includes options like HSAs and Medigap policies.