Retirees face $172,500 in health care costs, Fidelity study finds

A 65 -year -old child in 2025 can expect $ 172,500 on average for health expenditures and medical expenses throughout the retirement period.

This is according to the estimation of the cost of health care in FIDELITY for the year 2025, which increased by 4 % from the previous year. It sheds light on the overall ups of health expenses that have occurred since the first fidelity of $ 80,000 in 2002.

The report emphasizes a greater problem: 17 % of all respondents have never taken any action when it comes to planning health expenses in retirement. One in five respondents said they never think about health care needs during retirement. With Gen X, this rises to about one in four.

The costs of health care for retirees continue to rise

FIDELITY assessed joining the Medicare (Parts A, B) and Medicare Part D, which includes installments, joint payments and other external costs of medical care and prescribed medicines.

However, it does not include long -term care expenses. For example, even with medicare, retirees are responsible for medical care premiums, prescription medications, dental care and vision as well as other types of added expenses such as long -term care, according to sincerity. Some of these costs can be compensated for registration in Medicare Advantage plans, but these require separate monthly installments.

Chandler Regez, VidestMents Vice Consulting Head, told Fox Business that high healthcare costs are driven by several factors, especially the average life expectancy, as well as a health care rate that outperformed general inflation.

Despite the hard number, Riggs called Fidelity “an important vigil invitation to all generations.”

“It is not just a criterion for retirement willingness, but it also stresses the importance of planning as soon as possible,” Reges said.

Social security confidence reaches the lowest level in 15 years, as the youngest Americans lose confidence in the system

Matthew Gregory, director of planning for the Special Wealth Management Company, said that people are accustomed to an unexpected approach during their work years because a meaningful piece of cost can come out directly from their salary.

An elderly man who speaks to a psychological world in the mental health clinic, psychology and treatment of a session. (Getty / Getty Images)

“They may not think about the need for complementary coverage at the head of the A and B from Medicare, as well as the fact that Medicare does not cover most of the costs of long -term care. These expenses can quickly fall and become a realistic examination,” he said.

Likewise, Reges said that people who have health coverage through the employer will not think about how to cover medical expenses when they retire and no longer registered in the employer’s health plan.

This call to wake up to people close to retirement can force them to ask whether they have provided enough to retire, and if they can achieve their goals through the money they have and if they need to delay the retirement completely.

Gregory said: “They may also end up stability for a much lower level of coverage than it may be comfortable or tend to family members to fill the gaps in care,” Gregory said.

This data comes shortly after Aarp study the confidence of Americans in Social Security It is often seen as a safety network program because it provides a financial basis for retirees – was also a decrease.

Data, published earlier this week, showed that the Americans in general Social security confidence It decreased from 43 % in 2020 to 36 % in 2025, which is the lowest level since it decreased to 35 % in 2010.

Despite these results related to preparation for retirement and increased certainty about long -term financial support, Reges stressed that there are always steps that someone can take to improve his position financially, regardless of their place on the retirement journey.

Get Fox Business on the Go by clicking here

Reges said that providing accounts early and benefiting in terms of savings can be invested strong tools to build a “health care egg, regardless of age.”

Chirtler Regez, deputy head of financial consultations at Fidelity Investments, said early savings and benefit from accounts where savings can be invested are strong tools for building a “health care nest egg, regardless of age.” (Getty / Getty Images)

In addition, Riggs said that the employees registered in a qualified HSA health plan should consider using a health savings account.

For anyone, the HSAS triple tax feature makes it a multi -use tool to provide and pay health expenses. Vergings of taxes, and the HSA dollars can be spent on taxes when used for qualified medical expenses. Reges said that any potential growth in the money invested is also exempt from taxes.