Fidelity Projects $185,500 in Medical Costs for Retirees

Fidelity Investments released its annual healthcare cost estimate for 2026 this week. The report projects that a 65-year-old couple retiring this year will need approximately $185,500 to cover medical expenses throughout retirement.

This figure represents a 7.5% increase compared to the estimate released for the previous year. The rise reflects broader economic trends and the specific costs associated with medical care for older adults. The estimate serves as a benchmark for financial planners and individuals preparing for the costs of aging.

The calculation assumes the couple is covered by Medicare. However, it accounts for significant out-of-pocket costs that the federal health program does not cover. These expenses include premiums for Medicare Part B and Part D, as well as deductibles and copayments for doctor visits and prescription drugs.

Fidelity’s analysis also factors in costs for services that traditional Medicare generally excludes. Dental, vision, and hearing care are included in the total $185,500 figure. The estimate does not include the cost of long-term care, such as extended nursing home stays or assisted living facilities, which retirees must typically fund separately through insurance or personal savings.

Even with government coverage, healthcare remains one of the largest line items in a retirement budget. The financial services firm compiles this data to help savers understand potential liabilities. The number represents the amount a couple would need to have saved at age 65 to cover these costs with a high degree of confidence.

Financial advisors often cite this specific metric when creating retirement income plans. The rising estimate highlights the volatility of healthcare pricing in the United States. Savers are encouraged to review their specific health needs and potential coverage gaps when determining how much to set aside for medical bills in retirement.