Fidelity: 2026 Retirees May Face Healthcare Costs of Up to $185,500
A new Fidelity report estimates that a 65-year-old retiring in 2026 may need up to $185,500 to cover healthcare costs in retirement. The figure reflects rising medical expenses and does not include long-term care costs.
A 65-year-old retiring in 2026 may need up to $185,500 to cover healthcare costs throughout retirement, according to a new report from Fidelity Investments. The estimate reflects rising medical expenses and does not include the cost of long-term care.
Fidelity releases its annual healthcare cost estimate to help Americans plan for one of the largest expenses they will face in retirement. The 2026 figure represents an increase from previous years, driven by higher costs for prescription drugs, Medicare premiums, and out-of-pocket medical expenses.
The estimate assumes the retiree is enrolled in Medicare Parts A and B and a Medicare Part D prescription drug plan. It covers premiums, copayments, deductibles, and other out-of-pocket costs but excludes dental, vision, and long-term care expenses, which can add tens of thousands of dollars more.
Healthcare costs are one of the most unpredictable elements of retirement planning. Many Americans underestimate how much they will spend on medical care after leaving the workforce. A separate survey found that fewer than half of Americans are actively planning for retirement healthcare needs.
The Federal Reserve held its benchmark interest rate steady at 3.5 to 3.75 percent in June 2026, with rate cuts unlikely in the near term. That environment limits the returns available on conservative savings vehicles, making it harder for retirees to grow their healthcare reserves.
Financial advisers recommend that workers in their 50s and early 60s begin setting aside dedicated funds for healthcare costs, separate from general retirement savings. Health savings accounts (HSAs) remain one of the most tax-efficient tools for this purpose.
