No connection

Search Results

Noise Score 12 Neutral

Rising Healthcare Costs Pose Significant Risk to Retirement Portfolios

Apr 14, 2026 03:35 UTC
Long term

New data indicates that retirees face six-figure medical expenses that often exceed their financial preparations. Average costs for individuals are estimated at $172,500, doubling for couples.

  • Individual healthcare costs average $172,500 in retirement
  • Couples face an average burden of $345,000
  • Medical costs saw a 4% year-over-year increase from 2024 to 2025
  • Medicare Part B and D represent 44% of total estimated costs
  • Out-of-pocket expenses account for 47% of the total
  • One-fifth of Americans fail to factor healthcare into retirement plans

Retirees are increasingly underprepared for the non-discretionary burden of healthcare costs, which can significantly erode retirement savings. While many focus on housing and daily living expenses, medical costs represent a substantial and unavoidable financial commitment. According to data from Fidelity Investments, the average individual retiree is expected to spend $172,500 on medical expenses throughout their retirement. For married couples, this figure rises to $345,000. These figures highlight a growing gap in retirement planning for a significant portion of the population. The 2025 average of $172,500 represents a 4% increase over 2024, a trend driven by the steady impact of inflation. The cost structure is primarily divided between Medicare Part B and D, which account for 44% of the estimate, and out-of-pocket expenses—such as deductibles and co-payments—which comprise 47%. Prescription drugs make up the remaining 9%. Despite the scale of these expenses, Fidelity's research shows that approximately 20% of Americans have never considered the healthcare costs they will face in retirement. Unlike discretionary spending on travel or housing, healthcare is a mandatory expense, making it a critical vulnerability for those who have not adjusted their savings targets to account for these six-figure requirements.

Sign up free to read the full analysis

Create a free account to unlock full AI-curated market articles, personalized alerts, and more.

Create Free Account Already have an account? Sign In
Share this article

Related Articles

Score 5

2 S&P 500 Stocks to Keep an Eye On and 1 We Brush Off

Apr 16, 19:22

Score 25

Here's our monthly update on all 31 portfolio stocks, including 3 on the buy list

Apr 16, 19:14

Score 10

1 S&P 500 Stock on Our Watchlist and 2 Facing Challenges

Apr 16, 18:58

Score 5

1 Healthcare Stock to Target This Week and 2 We Avoid

Apr 16, 18:50

Stay Ahead of the Markets

Join thousands of traders using AI-powered market intelligence. Get personalized insights, real-time alerts, and advanced analysis tools.

Get Started Free View Plans
Features Terminal AI Assistant Analysis Market News Pricing
Start Trading with AI Already have an account? Sign In
Home
Terminal
AI
Markets
Profile