Healthcare Cost Calculator

Last updated July 2, 2026

Healthcare is typically the largest and most unpredictable expense in retirement, and most people significantly underestimate its cost. Fidelity's 2025 Retiree Health Care Cost Estimate calculates that an average 65-year-old couple retiring today will need approximately $330,000 to cover medical expenses throughout retirement. That figure includes Medicare premiums, supplemental coverage, dental, vision, and out-of-pocket costs, but excludes long-term care — which, if needed, adds substantially more. Medicare Part B premiums are income-adjusted, starting at $202.90 per month per person in 2026 for most retirees and rising well beyond that for higher earners under IRMAA surcharges.

The gap between 62 and 65 — when Medicare eligibility begins — is one of the most expensive coverage periods for early retirees. Marketplace premiums for a 62-year-old not yet eligible for Medicare can run $700 to $1,200 per month for an individual without subsidies. This cost alone makes early retirement financially challenging without either very substantial savings or a spouse with employer coverage. Healthcare cost planning for retirement should explicitly model both pre-Medicare and post-Medicare periods, account for inflation specific to medical costs (historically 4 to 5 percent annually), and include a scenario for long-term care needs.

Healthcare is not a minor retirement line item — for many retirees it becomes the largest single expense category. Calculate the cost of covering the gap from retirement to Medicare age separately from the post-65 Medicare cost estimate, account for inflation in both periods, and give serious consideration to long-term care planning before it becomes an urgent rather than a planned expense.