Retirement Healthcare Cost Calculator

Estimate healthcare costs in retirement (Fidelity: $315K for couple at 65).

Est. Couple Cost

$513,101.81

Est. Single Cost

$256,550.90

Healthcare Planning

Years to Retirement10
Couple (Fidelity est.)$513,101.81
Single$256,550.90
Pre-Medicare Gap Cost$0.00
Monthly Budget Needed$855.17

Use the Retirement Healthcare Cost Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Retirement healthcare costs are a significant, often underestimated, financial burden. This calculator helps you estimate your potential healthcare expenses in retirement, allowing for better financial planning and a more secure future. Fidelity's 2023 estimate for a couple retiring at age 65 in 2026 is approximately $315,000, and this tool will personalize that figure based on your individual circumstances.

Our calculator uses a base cost derived from Fidelity's 2023 estimate for 2026, which is then adjusted for individual factors such as anticipated retirement age, current health status, and desired healthcare coverage level. We apply an average annual healthcare inflation rate (estimated at 5.5% for 2026 and beyond) to project costs over your expected retirement lifespan. The formula considers the number of years between your retirement and your estimated life expectancy, multiplying the inflation-adjusted base cost by factors reflecting health status and coverage choices.

Remember, these are estimates; actual costs can vary widely based on unforeseen health events, changes in healthcare policy, and individual spending habits. A common mistake is assuming Medicare covers all expenses; it does not, leaving significant out-of-pocket costs for premiums, deductibles, and co-pays. Don't forget to factor in potential long-term care needs, which are typically not covered by traditional health insurance.

Example: John and Mary's Retirement Healthcare Plan

  1. 1 John and Mary, both 55, plan to retire at age 65 in 2036. They anticipate living until 90. They consider themselves in 'average' health and want 'good' healthcare coverage.
  2. 2 The calculator first inflates Fidelity's 2026 base of $315,000 by 5.5% annually for 10 years to reach their retirement year (2036). It then multiplies this figure by factors representing 'average' health and 'good' coverage, and projects this cost over their 25-year retirement period (ages 65-90).
  3. 3 Based on these inputs, John and Mary's estimated total healthcare costs in retirement are $587,450.
  4. 4 This $587,450 estimate highlights the substantial financial planning required. It suggests they need to save an additional $23,498 per year for the next 10 years, solely for healthcare, beyond their other retirement savings goals. This prompts them to explore health savings accounts (HSAs) and consider their long-term care insurance options.

Source: IRS · Last updated: April 2026

Frequently Asked Questions

How much should I budget for healthcare in retirement?
Fidelity estimates a 65-year-old couple retiring in 2026 needs approximately $315,000 to cover healthcare costs in retirement. This includes Medicare premiums, supplemental insurance, copays, and out-of-pocket expenses but excludes long-term care.
What does Medicare not cover that I need to plan for?
Medicare does not cover long-term care, most dental work, vision care, hearing aids, or overseas medical costs. These gaps can be significant, and supplemental insurance or savings are needed to fill them.
How do healthcare costs change as I age in retirement?
Healthcare spending accelerates in later retirement years. Costs are relatively modest from 65-74, increase moderately from 75-84, and can spike dramatically after 85 due to chronic conditions and potential long-term care needs.

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