A $345,000 retirement expense is hiding in plain sight

A married couple retiring in 2026 could face $345,000 in medical expenses over the course of retirement. That’s not a one-time bill, but a lifetime tab that grows with inflation and outpaces many other planned costs. The average individual will spend $172,500, according to Fidelity Investments — a figure that rose 4% from 2024 and continues climbing. For couples, the total doubles. Most retirees know housing, food, and utilities will cost money. But healthcare, though inevitable, remains out of focus. Twenty percent of Americans have never even considered it.

Medicare covers many seniors, but not everything. Part B and Part D premiums — paid out of pocket — make up 44% of Fidelity’s estimate. Co-payments, deductibles, and other out-of-pocket expenses account for 47%. Prescription drugs, the final 9%, still add up over decades. None of these costs disappear with enrollment. And because health needs increase with age, spending often rises later in retirement, when income is fixed.

The problem is not solvency in a single year. It’s the cumulative weight of unplanned spending. A retiree who budgets for living expenses but ignores healthcare may believe they have enough — only to fall $345,000 short over time.