Healthcare costs in retirement

Estimate Medicare, supplement, and out-of-pocket costs, plus long-term care planning, through your planning horizon.

Your inputs

About this calculator

Enter estimates for your ages, coverage choices, and current health spending. We project medical costs through your planning horizon.

Your information

Enter your best estimates below.

Your age now.
When you expect to leave work (often when employer coverage ends).
Married couples often pay more for two people on Medicare.
Medical costs vary a lot by region.
Poorer health usually means higher out-of-pocket costs.
Tobacco use raises many health costs in this model.

Coverage assumptions

Work insurance before 65 can lower costs until Medicare starts.
Extra insurance that helps pay Medicare deductibles and coinsurance.
Prescription drug coverage — separate from doctor visits.

Money & spending

Higher income can raise Medicare premiums (income-related surcharges).

Used for extra Medicare premiums when income is higher. Include Social Security, pensions, and withdrawals.

What you spend today on premiums, drugs, and out-of-pocket care.

Premiums, prescriptions, and out-of-pocket costs you pay today (household total).

HSA or money set aside only for medical bills.

How we run the estimate

Change healthcare inflation and savings growth below. Coverage and health answers stay in the panel above.

5.0%
5.0%
When Medicare begins
Age 65 in this model (Parts B, D, supplement, and income-based surcharges)
How long costs are projected
Through age 85
Healthcare inflation
5% per year on medical costs
Higher Medicare premiums
Based on the retirement income you enter (affects income-related surcharges)
Healthcare savings growth
5% per year on money set aside for care
Not included
Dental, vision, hearing aids, and surprise bills unless your spending inputs reflect them

Your results

Significant funding gap

What it means

Projected healthcare costs exceed dedicated savings by a large share in this model.

How we chose it

Gap divided by lifetime healthcare costs is 15% or more with the inputs you entered.

Estimated annual cost at retirement

$18,790

Lifetime healthcare spending from age 65 through 85 is projected at $726,038, with an estimated funding gap of $534,410 after dedicated savings and growth.

Long-term care costs (lifetime expected)

$245,670

Need paid care (planning est.)

57%

Healthcare cost projection

Significant funding gap

What it means

Projected healthcare costs exceed dedicated savings by a large share in this model.

How we chose it

Gap divided by lifetime healthcare costs is 15% or more with the inputs you entered.

Annual and lifetime estimates from retirement through your plan horizon.

Annual at retirement

$18,790

Lifetime total

$726,038

Long-term care costs

$245,670

One-year facility range: $216,000–$604,800

Funding gap

$534,410

Costs by age

Stacked annual healthcare spending under the selected scenario.

  • Before Medicare
  • Extra Medicare premium
  • Long-term care
  • Medicare supplement
  • Out-of-pocket
  • Part B
  • Part D
656667686970717273747576777879808182838485$0$20K$40K$60K$80K

Cost mix at retirement

First year of retirement in the selected scenario (horizontal bars).

$0$2K$4K$6K$8KPart BPart DMedicaresupplementOut-of-pocketLong-term care(expected)

Higher inflation scenario

Base healthcare inflation vs. base plus 2 percentage points.

  • Base case
  • Higher inflation (+2%)
67707376798285$0$25K$50K$75K$100K

Long-term care stress test

Base path vs. a multi-year elevated long-term care event in later retirement.

  • Base case
  • Long-term care scenario
67707376798285$0$85K$170K$255K$340K

Beyond this calculator

Medical spending interacts with income and longevity

This projection estimates premiums and out-of-pocket costs by age. A complete Retirelens plan also links:

  • Long-term care risk and how you might fund it
  • Dental, vision, and hearing costs often outside standard Medicare
  • Coverage choices for a spouse and the transition at age 65
  • How healthcare fits beside lifestyle spending and legacy goals

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Interpretation

What these numbers mean

Planning context for the estimates above. Not tax, legal, or investment advice.

At retirement (age 65), this model projects about $18,790 per year in healthcare-related costs under the base case scenario. Over your full horizon, that sums to about $726,038, including expected long-term care costs of $245,670.

With $150,000 set aside for healthcare and a 5% assumed return, you may still face a funding gap of about $534,410. Consider increasing savings, reviewing coverage choices, or building flexibility into your broader retirement budget.

Healthcare is one pillar of retirement planning. Pair this estimate with income, tax, and lifestyle planning so your whole plan — not just medical bills — stays resilient.

Methodology

How we figure this out

The rules and math behind this estimate.

From your retirement age through your plan-through age, the model builds a year-by-year healthcare budget. Before Medicare eligibility, it estimates individual coverage and cost sharing (or reduced employer-sponsored costs if you select that option). At and after Medicare eligibility, it layers standard Part B, optional Part D and Medicare supplement premiums, income-related surcharges based on estimated taxable income, and additional out-of-pocket costs adjusted for health, location, and care preference.

Long-term care is modeled as a probability-weighted annual expected cost, with an optional insurance offset when you have a policy. Scenario pills let you test higher healthcare inflation (+2 percentage points above your slider) or a concentrated multi-year long-term care event.

Dedicated healthcare savings grow at your selected return rate, then pay projected costs each year. Any shortfall accumulates as the funding gap. Results are planning illustrations — not guarantees, personalized medical forecasts, or enrollment recommendations.

Planning estimates only. This tool uses simplified national benchmarks and published Medicare premium structures. It does not provide medical, insurance, or tax advice, and is not a substitute for quotes from insurers, Medicare counselors, or licensed professionals. Premiums, income-based Medicare rules, and benefits change; verify current rules before making decisions.

Help

Frequently asked questions

Straight answers to common questions about this calculator.

How much will healthcare cost in retirement?

It varies by health, coverage choices, and how long you live. Expect premiums, doctor bills, and possibly long-term care. This tool gives a planning range, not a bill.

What does Medicare cover?

Medicare helps with hospital and doctor care but not most dental, vision, hearing, or long-term help with daily tasks. Many people buy extra plans and still pay deductibles and copays.

Can high income raise Medicare premiums?

Yes. Higher tax return income can mean higher Part B and D premiums about two years later.

What is a funding gap?

Money you may still need for healthcare after using savings set aside for that purpose. It is a warning to save more or adjust your plan — not a final bill.

Your full retirement picture

Retirement is more than money

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A good retirement plan covers money, health, how you spend your time, people you care about, and what you pass on. That is how Retirelens looks at the full picture.

Finance

Know where you stand and what to do next with your money.

74% of planners reported satisfaction with retirement income vs. 43% of non-planners (Goldman Sachs)

Health

Secure solid coverage, stay ahead with preventive care and healthy habits a staple.

68% of adults ages 50–64 said they were concerned that federal policy changes could affect their health insurance coverage. (University of Michigan)

Purpose

Shape days you look forward to, with steps to get there.

Research shows that a stronger sense of purpose is associated with lower mortality risk among adults over age 50. (American Medical Association)

Connections

Strengthen relationships and build a support circle.

A longitudinal study of adults aged 65+ found that older adults with more diverse social networks had a lower risk of death and better cognitive and physical function than those with less diverse networks. (Chico Health Aging Project)

Legacy

Organize your assets and document so your family isn't left guessing.

Without a proper estate plan, more than half of families experience disputes or have assets end up under court control. (LegalShield)