Retirees Face $345,000 Out-of-Pocket Healthcare Gap

A retired couple may face $345,000 or more in out-of-pocket healthcare costs over the course of retirement, even with a paid-off mortgage. This expense is a result of medical advances that have extended lifespans, forcing retirement savings to support more years of living expenses. Healthcare costs typically rise faster than general inflation. Medicare provides a foundation, but it is not a complete solution. Some studies estimate Medicare covers roughly two-thirds of total healthcare expenses. This leaves retirees to pay for premiums, cost sharing, dental, vision, hearing, certain prescription costs, and long-term custodial care.