Want to retire? Make sure you check out the latest health care cost estimates first.

June 15, 2021

There’s no question that health care (finding it and paying for it) is a big factor when it comes to our decisions about when and where to retire.

And for good reason. Fidelity Investments recently released its 20th annual Retiree Health Care Cost Estimate finding that a 65-year-old couple that retires this year can expect to spend $300,000 in health care medical expenses over the time of their retirement. That’s an 88 percent increase since 2002.

A single retiree woman can expect to spend $157,000, a single man $143,000. The estimate assumes that retirees are enrolled in traditional Medicare Part A and Part B, which includes coverage for hospitals stays, doctor visits and physical therapy, and in Medicare Part D, which covers prescription drugs.

While Fidelity’s 2021 estimate marks a new high, it is just 1.7 percent more than the 2020 estimate, which was $295,000. Experts contend the slowing growth may be a sign that health care inflation has remained relatively flat the past few years.

So what should we do? Keep saving, make sure to adjust our plans for rising costs and continue to speak out for affordable health care options.

Have you, or a family member, recently retired? Share your tips and stories with Voices for Affordable Health.