Fidelity Reports Record High in Projected Retirement Healthcare Costs
Fidelity Investments has reported that projected healthcare costs for retirees have reached a new high, with a single retiree expected to spend an average of $185,500 on medical expenses over their lifetime. This represents a 7.5% increase from the previous year and marks the highest level in Fidelity's 25-year history of tracking such data. The firm noted that these rising costs are driven by healthcare inflation outpacing broader economic indicators like the consumer price index, with annual increases accelerating over recent years—from roughly 4% in 2024 to 7.5% in 2026. For a married couple retiring at age 65, combined lifetime medical expenses could reach $371,000. Fidelity also highlighted that many pre-retirees are unprepared for these costs due to misconceptions about what Medicare covers. About half of those nearing retirement incorrectly believe the federal program will cover all their healthcare needs, leaving them vulnerable to high out-of-pocket expenses.
Topics: Fidelity research healthcare costs Medicare out-of-pocket expenses