How much does healthcare cost in retirement?

Fidelity estimates a 65-year-old couple retiring in 2024 needs approximately $315,000 to cover healthcare costs in retirement (excluding long-term care). This is an average; actual costs depend heavily on health status and location.

What does Medicare cover and not cover?

Medicare covers: hospital stays (Part A), doctor visits (Part B), prescription drugs (Part D), and some preventive care. NOT covered: dental, vision, hearing, most long-term care, and international travel emergency care (generally).

What are Medicare Part B premiums?

Standard Part B premium (2024): $174.70/month. Higher-income retirees pay IRMAA surcharges starting at $103,000 (single): up to $594.00/month for income above $500,000. Income is based on MAGI from 2 years prior.

What is the average long-term care cost?

National averages (2024): nursing home (semi-private room) $8,669/month; assisted living $4,995/month; home health aide $5,148/month. Average LTC need is approximately 3 years, but 20% need 5+ years of care.

How can HSA funds help with retirement healthcare?

An HSA used as a stealth retirement account: maximize contributions during working years, invest the funds, and let them compound. After 65, use for Medicare premiums, co-pays, dental, vision, and any qualified medical expense tax-free.

Retirement Healthcare Cost Planning Calculator

Estimate lifetime retirement healthcare costs. Fidelity 2024: average couple needs $315,000 for healthcare in retirement (excluding long-term care). Medicare Part B/D premiums, IRMAA surcharges, dental, vision, hearing, and LTC cost projections.

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Annual Rate (%)

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Estimate lifetime retirement healthcare costs. Fidelity 2024: average couple needs $315,000 for healthcare in retirement (excluding long-term care). Medicare Part B/D premiums, IRMAA surcharges, dental, vision, hearing, and LTC cost projections. Use the retirement healthcare cost result to inform your calculation.

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Frequently Asked Questions

How much does healthcare cost in retirement?

What does Medicare cover and not cover?

What are Medicare Part B premiums?

What is the average long-term care cost?

How can HSA funds help with retirement healthcare?