Fidelity says 2026 retirees may spend $185,500 on healthcare. One category may push those costs higher
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A 65-year-old who retires in 2026 may spend an average of $185,500 on health and medical expenses in retirement, according to a new estimate from Fidelity Investments - a price tag that the research shows is unexpectedly high for many retirees. The figure is up 7.5% from estimates for last year's retirees amid rising healthcare costs, growing costs for chronic conditions and increasing utilization of medical services, according to the research. "It definitely is a higher increase than we've had in the past few years," said Helen Lloyd-Williams, vice president of workplace consulting at Fidelity. The findings come as a record number of baby boomers are reaching traditional retirement age - a trend known as " peak 65 " - and may soon have to determine how to fund their medical care. Fidelity's estimate assumes retirees are enrolled in traditional Medicare - Part A hospital insurance and Part B medical insurance - as well as Part D prescription drug coverage. The estimate assumes 48% of costs come from Medicare cost-sharing provisions such as co-payments, coinsurance and deductibles; 45% of costs come from monthly expenses associated with premiums for Medicare Parts B and D; and 7% comes from co-payments and expenses not covered by Medicare Part D that people pay out of pocket for branded, generic and specialty drugs. Most pre-retirees - 54% - incorrectly expect Medicare will...
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