The average 65-year-old enrolled in Medicare and retiring this year can expect to pay $157,500 in healthcare costs over the course of their retirement, according to Fidelity Investments' annual estimate.
That 2023 estimate is the same as the 2022 estimate due to expected limits on retiree out-of-pocket prescription drug costs beginning in 2025. It is the only time in 22 years of estimations that the number has remained flat year over year, according to a June 21 news release from Fidelity Investments. However, that number has nearly doubled since 2002, when the estimated healthcare costs for a single retiree was $80,000.
Americans tend to underestimate their healthcare costs in retirement, a 2022 survey found. On average, they expect a couple to spend $41,000 on healthcare post-retirement.