Paying for health care in retirement

Nearly 3 out of 4 people agree that spiraling health care costs is one of their top fears in retirement¹

2/3 of adults aren't sure or can’t estimate how much they expect to pay for health care costs in retirement¹

By one estimate, an average 65-year-old couple retiring today could spend up to $428,000 on health care costs in retirement²

• Medicare, supplemental Medicare plans and private health insurance; costs include premiums, deductibles, copayments and coinsurance
• Health care that Medicare and other health insurance may not cover, such as long-term care, dental care, vision care and hearing aids
• Prescription medications

Planning now can help you prepare for these expenses and make them feel more manageable.

Consider these ideas.

1. Factor in Medicare and other health-insurance premiums when setting your retirement savings goal. Monthly premiums account for a significant portion of healthcare spending in retirement. To see current premiums, visit Medicare.gov.
2. Earmark a portion of your savings for out-of-pocket costs. This includes everything outside of premiums, like deductibles and non-covered care. These less-predictable expenses can account for a significant portion of health-care spending for retirees. Having money reserved to cover them can give you peace of mind.
3. Take advantage of a Health Savings Account (HSA) if your employer offers one. Money you set aside in an HSA can be used for qualified medical expenses tax-free both now and after you retire.
4. Take care of yourself. Improving or maintaining your health now could help cut down on medical expenses in the future.

[1] The Nationwide Retirement Institute® 2025 Health Care Survey, news.nationwide.com/download/87c83cfb-c905-4dd2-a2c7-0951d1f97885/nfm-25218ao_003.pdf (Nov. 2025)
[2] "Projected Savings Medicare Beneficiaries Need for Health Expenses Continued to Rise in 2024," EBRI Issue Brief (March 6, 2025)