Fidelity Investments® shared its 23rd annual Retiree Health Care Cost Estimate, revealing that a 65-year-old retiring this year can expect to spend an average of $165,000 in health care and medical expenses throughout retirement.
Why it matters: Fidelity’s 2024 estimate is up nearly five percent over 2023 and has more than doubled from its inaugural estimate in 2002.
Fidelity’s estimate assumes an individual is enrolled in traditional Medicare—both Part A and Part B—which covers most hospital care and doctor visits. However, things like Medicare premiums, prescription drugs, dental and vision care, and all other healthcare costs that Medicare typically does not cover are left to retirees to manage on their own.
