Managing High Costs of Healthcare During Retirement

Tuesday Sep 5th, 2023

In a recent survey, 35% of people reported they were either “not too” or “not at all” confident that they would have enough money to pay for their medical expenses in retirement. Regardless of your confidence, being aware of potential healthcare costs during retirement may allow you to understand what you can and cannot afford.1

As people age, their healthcare needs typically increase. With more frequent doctor visits, medication needs, and other healthcare expenses, it’s important for retirees to plan ahead and consider the potential costs of healthcare during their retirement years.

Healthcare Breakdown

A retired household typically faces three types of healthcare expenses.

  1. The premiums for Medicare Part B (which covers physician and outpatient services) and Part D (which covers drug-related expenses). Typically, Part B and Part D are taken out of a person’s Social Security check before it is mailed, so the premium cost is often overlooked by retirement-minded individuals.
  2. Copayments related to Medicare-covered services that are not paid by Medicare Supplement Insurance plans (also known as “Medigap”) or other health insurance.
  3. Costs associated with dental care, eyeglasses, and hearing aids.

It’s important to note that while Medicare does cover many healthcare expenses, it doesn’t cover everything. For example, Medicare doesn’t cover dental or vision care, and there are often out-of-pocket costs for things like prescription medications and medical equipment. It’s important to understand the different parts of Medicare and what each part covers in order to plan for potential costs. And don’t forget to mark your calendars for October 15th. That’s when Medicare Open Enrollment begins.

It All Adds Up

According to a HealthView Services study, a 65-year-old healthy couple can expect their lifetime healthcare expenses to add up to around $597,389 before accounting for inflation.2

Should you expect to pay this amount? It depends. Seeing the results of this study may help you make some critical decisions when creating a strategy for retirement. Without a solid approach, healthcare expenses may add up quickly and alter your retirement spending.

Another factor to consider is long-term care. Long-term care can be expensive, and it’s not always covered by Medicare. This can include things like nursing home care or in-home care, which can add up quickly over time. It’s important to consider long-term care insurance or other options to help cover these potential costs.

Additionally, it’s important to take care of your health in order to potentially reduce healthcare costs in the future. This can include things like exercising regularly, eating a healthy diet, and getting regular check-ups with your doctor.

Overall, it’s important to plan ahead and consider the potential costs of healthcare during retirement. By understanding Medicare, considering long-term care options, and taking care of your health, you can help to potentially reduce healthcare costs and ensure a comfortable retirement.

Prepared for the Future?

Feeling overwhelmed and not sure where to begin? Contact one of our advisors today to see how we can help you navigate the future and plan ahead for all your upcoming healthcare needs so you can focus on what’s most important – enjoying your retirement.



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Campbell, CA 95008

Phone: 408-871-5900

Fax: 408-871-5905

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