Retirees face rising healthcare expenses not fully covered by Medicare, outpacing Social Security COLAs by double.
A new study estimates the lifetime cost of Medicare for retirees at $688,996, including premiums, coinsurance, and uncovered services like dental care. These expenses are rising at roughly twice the rate of Social Security cost-of-living adjustments, straining retirement budgets.
Healthcare inflation is projected at 5.6% long-term, according to the report, far exceeding general inflation. Medicare does not cover all medical needs, leaving retirees to shoulder significant out-of-pocket costs, which may exceed $955,411 in some cases.
The findings highlight a growing gap between retirement savings and healthcare expenses, with many retirees unprepared for the financial burden. Rising costs could pressure disposable income and alter spending patterns in retirement.