Retirees Should Budget $200,000 for Healthcare — Even With Medicare

Retirees should set aside $200,000 for medical costs in their later years — a figure that underscores how Medicare alone won’t cover the full burden of healthcare in retirement. Even after becoming eligible for Medicare, retirees face significant out-of-pocket expenses, making healthcare one of the largest line items in a retirement budget. Whitney Stidom, vice president of consumer enablement at eHealth, emphasized that retirees must plan for this reality. Medicare coverage varies widely, and choices around prescription drugs, access to preferred doctors, and management of chronic conditions can dramatically affect annual costs. Evaluating these factors carefully doesn’t just ensure continuity of care — it can yield more than $1,800 in savings each year.