The 2026 Medicare Horizon: Projections for Health Care Costs

Rising health care costs are putting retirement savings to the test—can your plan keep up?

Medicare won’t cover everything—and health care costs can quietly drain your retirement savings. Andrii Spy_k/Shutterstock

One of the largest expenses retirees face is health care, and it continues to rise faster than general inflation.

If the increase rate of health-related expenses remains unchanged from last year, the average 65-year-old couple retiring today may need roughly $345,000 to cover health care costs throughout retirement, according to Fidelity Investments. That figure includes Medicare premiums, supplemental insurance, and out-of-pocket medical expenses, but it does not include long-term care.