Retirees Face Nearly $186K in Healthcare Costs, Fidelity Finds

Fidelity’s annual study estimates a 65-year-old retiring now could need about $185,500 in out-of-pocket healthcare costs over retirement, up 7.5% from last year. The projection assumes traditional Medicare Parts A/B and Part D (premiums, copays, drugs) but excludes long-term care, OTC meds, and most dental. Costs vary by gender, health, location and lifespan, and health expenses can consume roughly a third of Social Security income and about a quarter of total retirement income. The piece suggests proactive planning and using HSAs to prepare for rising healthcare costs in retirement, noting rising Part B premiums (about $202.90/month) and a higher annual deductible this year.