Free retirement healthcare cost calculator. Estimate lifetime medical expenses including Medicare premiums, Medigap, Part D, and out-of-pocket costs with medical inflation projections.
The Retirement Healthcare Cost Calculator estimates total medical expenses from retirement through life expectancy, accounting for Medicare premiums, supplemental insurance, prescription drug coverage, and out-of-pocket costs with medical inflation.
Healthcare is often one of the largest and least predictable retirement expenses. Costs vary widely based on health status, coverage choices, geography, and longevity. Even before long-term care enters the picture, Medicare premiums, Part D coverage, supplemental insurance, and recurring out-of-pocket costs can absorb a meaningful share of a retirement budget.
This calculator projects annual and lifetime healthcare spending so you can plan savings, HSA use, and insurance choices with a dedicated healthcare line item rather than burying those costs inside a general retirement-spending estimate.
Medical costs consistently rise faster than general inflation (5-7% historically vs 2-3%). Many retirees underestimate healthcare expenses because Medicare covers only about 80% of Part B services. Medigap, dental, vision, hearing, and long-term care are additional costs that add up significantly over a 20-30 year retirement. Using this calculator ensures these expenses are included in your overall retirement plan.
Annual Cost = Medicare Part B + Medigap + Part D + Out-of-Pocket Each component grows at the medical inflation rate annually Lifetime Cost = ∑ Annual Cost from retirement age to life expectancy Present Value = ∑ Annual Cost / (1 + discount rate)^year
Result: Lifetime cost: ~$387,000 (today's PV: ~$240,000)
Starting at age 65 with 2025 Medicare premiums ($185/mo Part B, $160/mo Medigap, $35/mo Part D, $250/mo out-of-pocket), annual cost begins at ~$7,560. With 5% medical inflation over 20 years, costs reach ~$19,000/year by age 85. The sum totals approximately $387,000 in nominal dollars, or about $240,000 in present value at a 4% discount rate.
Healthcare costs are the single largest variable expense in retirement planning. Unlike housing or food, medical expenses tend to increase sharply with age and are subject to medical inflation that far outpaces general price increases. A couple retiring at 65 today may spend $300,000-$400,000 on healthcare over their lifetime.
Medicare Part A covers hospital stays (mostly free). Part B covers doctor visits and outpatient care ($185/month premium, 20% coinsurance). Part D covers prescription drugs ($35/month average). Medigap supplemental insurance fills the gaps in Part B coverage. Medicare Advantage (Part C) bundles everything with different cost structures.
Retirees between 55 and 65 face the most expensive healthcare years. Without employer coverage, ACA marketplace plans or COBRA are the primary options. Careful income management can help qualify for ACA subsidies: keep modified AGI under 400% of the federal poverty level for premium tax credits. This is another reason Roth accounts are valuable — Roth withdrawals don't count as income for ACA subsidy calculations.
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This worksheet projects retirement healthcare costs year by year, separating the pre-Medicare years from Medicare-eligible years and then inflating the selected annual cost assumptions over the retirement horizon. It is a planning aid, not a quote for insurance premiums or a guarantee of future medical inflation.
Medicare Part A is premium-free for most retirees. Part B costs $185/month (standard premium). Part D averages $35/month. Most retirees also buy Medigap (supplemental) insurance at $120-$250/month depending on the plan and location. Total Medicare-related costs are typically $4,000-$6,000/year before out-of-pocket expenses.
Medicare does not cover dental, vision, hearing aids, most long-term care, overseas medical emergencies, or cosmetic procedures. Part B also has a 20% coinsurance with no out-of-pocket maximum, which is why Medigap is important. These gaps can add $2,000-$5,000/year in additional costs.
Medical inflation measures the annual increase in healthcare costs. Historically, medical inflation has averaged 5-7% per year, roughly double the rate of general inflation. Medicare premiums, drug costs, and out-of-pocket expenses all tend to increase at this rate. Even at 5%, costs double roughly every 14 years.
If you retire before 65, you need bridge coverage. Options include: COBRA (18 months, expensive), ACA marketplace plans (subsidies available based on income), spouse's employer plan, or health-sharing ministries. Budget $500-$1,500/month per person for pre-Medicare coverage.
About 70% of people over 65 will need some form of long-term care. Nursing homes average $95,000-$115,000/year. Long-term care insurance, self-insurance, or hybrid life/LTC policies are the main options. This calculator focuses on routine healthcare but long-term care should be planned separately.
Fidelity's 2024 estimate is $315,000 for a 65-year-old couple. For a single person, plan for $150,000-$200,000. These figures exclude long-term care and dental/vision. If you retire early, add $12,000-$18,000 per year of pre-Medicare coverage.