Fidelity Projects 2026 Retirees to Face $185,500 in Healthcare Costs Amid Rising Expenses
Fidelity Investments has released a report estimating that individuals retiring in 2026 will face an average of $185,500 in healthcare costs during retirement. This figure represents a 7.5% increase from the previous year's estimate, driven by rising healthcare costs, increased chronic conditions, and greater utilization of medical services. The report assumes retirees will be enrolled in traditional Medicare, including Parts A, B, and D, with costs divided among Medicare cost-sharing provisions, monthly premiums, and out-of-pocket expenses for drugs not covered by Medicare Part D. Despite the slight reduction in prescription drug costs due to new Medicare price negotiations, other healthcare expenses are expected to rise. The report highlights a common misconception among pre-retirees, with 54% incorrectly believing Medicare will cover all their health expenses. 
