A 65-year-old retiring in 2026 may need an average of $185,500 for health and medical expenses throughout retirement, according to a new estimate from Fidelity Investments. The figure highlights how healthcare remains one of the biggest budget items many Americans face after leaving the workforce.
The estimate points to the growing financial pressure retirees may encounter even before accounting for other living costs. For people building a retirement plan, the new number underscores the need to include healthcare spending as a major long-term expense rather than a smaller line item.
Fidelity’s research also suggests that one area of healthcare spending could push total costs even higher for some retirees. That means the average figure may not reflect what every household will actually pay, especially if medical needs vary over time.
The latest estimate adds to the broader conversation around retirement readiness, savings strategies and out-of-pocket medical spending. As healthcare prices continue to shape retirement planning, many future retirees may need to prepare for costs that are both significant and difficult to predict.
