Rising health costs push 2026 retirees toward an $185k bill, Fidelity finds

Fidelity estimates a 65-year-old retiree in 2026 will need about $185,500 for health and medical costs—up 7.5% from last year—driven by higher costs and more chronic conditions. The projection assumes traditional Medicare (Parts A/B plus Part D) with about 48% of costs from cost-sharing, 45% from premiums, and 7% from out-of-pocket drug costs; long-term care costs are not included but can push totals higher, and many pre-retirees underestimate Medicare coverage, underscoring the value of early saving and HSAs.