Overview

• Fidelity’s annual survey shows a 65-year-old retiring in 2025 faces $172,500 in out-of-pocket medical expenses, up 4% from last year’s $165,000 estimate.
• Medicare Part B premiums rose to $185 per month in 2025 and are projected to reach $206.20 monthly in 2026.
• Standard cost projections exclude long-term care despite estimates that roughly 80% of retirees will need it and that annual nursing home fees can exceed $74,000.
• Although Fidelity HSA accounts grew 23% in 2024, fewer than one in four Americans contribute to HSAs and most near-retirees aren’t aware they can use them for retirement funding.
• Overall medical care costs climbed nearly 3% in 2024 and more than 30% over the last decade, but one in five Americans still haven’t factored healthcare into their retirement plans.