The 2026 Medicare Horizon: Projections for Health Care Costs

Medicare won’t cover everything—and health care costs can quietly drain your retirement savings. Andrii Spy_k/ShutterstockOne of the largest expenses retirees face is health care, and it continues to rise faster than general inflation.If the increase rate of health-related expenses remains unchanged from last year, the average 65-year-old couple retiring today may need roughly $345,000 to cover health care costs throughout retirement, according to Fidelity Investments. That figure includes Medicare premiums, supplemental insurance, and out-of-pocket medical expenses, but it does not include long-term care.