Healthcare Costs in Retirement

As many of my clients approach retirement, I'm increasingly concerned about healthcare costs, especially considering that 37% of workers, like them, are uncertain about covering medical expenses post-career. In this article, I explore the complexities of retirement healthcare expenses, from Medicare premiums to copayments, aiming to shed light on overlooked aspects and help us prepare financially for the future.
Healthcare Costs Retirement - an Article from fee-only financial planner, Brian Bickett

In a 2023 survey, 37% of all workers 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, however, being aware of potential healthcare costs during retirement may allow you to understand what you can pay for and what you can’t.1

Health-Care BreakdownFaucet

A retired household 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 – which are typically not covered by Medicare or other insurance programs.

It All Adds Up

According to one study, the average 65-year-old couple can expect to need $315,000 saved to cover healthcare expenses in retirement.2

Should you expect to pay this amount? Possibly. Seeing the results of one 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.

Healthcare Costs in Retirement - an Article from fee-only financial planner, Brian Bickett

Prepared for the Future?

Workers were asked how much they have saved and invested for retirement – excluding their residence and defined benefit plans.

Source:, 2023


As we navigate the intricacies of healthcare costs in retirement, it’s crucial to remember that we’re not alone in this journey. Planning for our medical expenses requires careful consideration and sometimes professional guidance.

If you find yourself needing assistance in managing your healthcare costs as you transition into retirement, please don’t hesitate to reach out. Feel free to schedule a call on our calendar, where we can provide personalized support and guidance tailored to your specific needs. Your financial security in retirement is our priority, and we’re here to help you every step of the way.

Brian Bickett, CFP at Iron Mountain Financial Planning, LLC

Brian Bickett, CFP®

Brian Bickett is a fee-based CERTIFIED FINANCIAL PLANNER™ professional located in Rapid City, SD and serving clients across the country. His financial advisor approach provides him deep understanding of your retirement goals and allows him to connect your money to your life in a way that feels right to you.

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