Fidelity data shows medical expenses for retirees rose sharply this year, excluding long-term care costs.
Retirees now face an average of $185,500 in healthcare costs during retirement, a 7.5% increase from 2024, according to new estimates. The rise follows a 4% increase last year, reflecting broader inflationary pressures on medical expenses.
The calculation assumes enrollment in Medicare Parts A, B, and D, covering hospital stays, doctor visits, and prescription drugs. Long-term care costs remain excluded from the estimate, which aims to guide financial planning for retirees.
Healthcare consistently ranks as one of the largest expenses for retirees, outpacing many other living costs amid ongoing inflation.