Fidelity Estimates $185,500 in Healthcare Costs for Retirees by 2026
According to Fidelity Investments' latest annual Retiree Health Care Cost Estimate, Americans retiring at age 65 will need approximately $185,500 saved specifically for healthcare expenses during retirement. This figure represents a 7.5% increase from the previous year and accounts for rising medical costs, increased service usage, and chronic condition management. The estimate includes Medicare premiums, copayments, deductibles, coinsurance, and prescription drug out-of-pocket costs but excludes long-term care expenses. Fidelity's analysis shows that nearly half of pre-retirees mistakenly believe Medicare will cover all their healthcare needs. Medicare Parts B and D account for 45% of the projected cost, while other medical services make up another 48%, with prescription drug out-of-pocket costs accounting for the remaining 7%. Fidelity officials emphasized the importance of planning beyond savings targets to address ongoing health care expenses in retirement. The report highlights growing concerns about healthcare affordability. A separate June Mercer study predicted a 6.7% rise in employer-sponsored health benefits, marking one of the largest increases in over a decade.
Tickers: $FDS
Topics: Fidelity Investments healthcare costs retirement planning