Healthcare Cost Retirement Calculator
Estimate how much you need to save for medical expenses in retirement based on your current situation and future projections.
Your Healthcare Cost Estimate
Healthcare Cost Retirement Calculator
Use our Healthcare Cost Retirement Calculator to accurately estimate your future medical expenses after you retire. With rising healthcare inflation, this tool helps you make informed decisions and build a strong retirement plan.
Why Use a Healthcare Cost Retirement Calculator?
Healthcare expenses are one of the biggest unknowns in retirement planning. According to Fidelity, a 65-year-old couple retiring today may need over $315,000 for healthcare alone. This calculator will help you:
- Estimate future healthcare costs using current data
- Include healthcare inflation and insurance coverage
- Compare against your current savings
- Determine annual savings needed for full coverage
How to Use Our Healthcare Retirement Calculator Tool
Visit our interactive calculator tool and enter these details:
- Your age and planned retirement age
- Annual medical spending (based on current expenses)
- Estimated insurance coverage (e.g., Medicare at ~80%)
- Current savings (HSA, IRA, etc.)
- Yearly contributions to health savings
- Expected inflation (5-6%) and investment return rate
Understanding Your Healthcare Retirement Projections
After calculation, you’ll receive projections such as:
- Total expected medical costs in retirement
- Out-of-pocket expenses after insurance
- Estimated savings at retirement
- Coverage timeline and gaps
- How much more you need to save annually
Want to Calculate Full Retirement Needs?
Use our Retirement Savings Calculator to combine healthcare with other retirement expenses.
Frequently Asked Questions
How accurate is this healthcare cost retirement calculator?
This tool uses financial models and historical healthcare inflation data, but it provides estimates—not guarantees. Review your plan annually and update inputs based on new health or financial changes.
Why does healthcare cost grow faster than other expenses?
Healthcare inflation outpaces general inflation due to drug prices, medical tech, and aging populations. It often averages 5-6%, while overall inflation is usually around 2-3%.
Does it include long-term care planning?
No, this calculator focuses on typical medical expenses. For long-term care costs, consider separate insurance or savings plans. Nursing home costs can exceed $100,000 annually.
How much will Medicare cover?
Medicare typically covers 80% of approved costs, but not dental, vision, or most long-term care. Many retirees purchase Medigap or Advantage plans for extra coverage.
What are the best savings accounts for retirement healthcare?
HSAs offer triple tax advantages if you’re eligible. Other good options include Roth IRAs, traditional retirement accounts, and investment accounts. Diversifying your savings is key.
What return rate should I use?
We suggest 5% as a conservative estimate. Riskier portfolios might yield 7-8%, but lower-risk strategies should stick to 3-4%. Balance return with liquidity and risk tolerance.