Fidelity: 2026 Retirees May Face $185,500 in Healthcare Costs Over Retirement

Fidelity Investments estimates that a couple retiring in 2026 may face total healthcare costs of $185,500 over the course of their retirement, according to the company's annual retiree health care cost estimate.

The figure accounts for Medicare premiums, out-of-pocket costs, and prescription drug expenses. It does not include long-term care costs, which can add significantly to the total depending on an individual's health needs.

Financial planners say the estimate highlights the importance of dedicated healthcare savings as part of retirement planning. Many retirees underestimate how much they will spend on healthcare, particularly as they age and require more medical services.

Health savings accounts, or HSAs, remain one of the most tax-efficient ways to save for healthcare costs in retirement. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. However, HSAs are only available to individuals enrolled in high-deductible health plans.

The 2026 estimate comes as retirees also face uncertainty about Social Security cost-of-living adjustments. Estimates for the 2027 COLA have trended downward as inflation moderates, which could reduce the purchasing power of Social Security benefits for some retirees.

Experts recommend that workers approaching retirement factor healthcare costs into their savings targets and consider working with a financial planner to model different scenarios based on their expected health needs and retirement timeline.