Call (951) 768-5398 to speak with a licensed insurance agent.

Call (951) 768-5398 to speak with a licensed insurance agent.

How Much Will You Spend on Healthcare in Retirement?

Posted by Darrell Evans, July 24, 2018

For retirees, planning is everything. Hopefully you spent years planning for retirement before ever making the leap, but your strategizing doesn’t stop there. As with any other life stage, you will continue to adjust your budget throughout the years.

You might be surprised to learn that healthcare is one of the biggest expenses faced by most retirees, and therefore you should carefully plan your budget around this necessity.

Why? First of all, Medicare isn’t free. You’ll pay premiums each month, and you will also be subject to co-pays and deductibles. But did you know that Medicare doesn’t cover everything you might need? For example, it doesn’t cover dental care, so you will be responsible for the cost of cleanings and any necessary repairs to your teeth. One crown can cost about 1,500 dollars; that’s not a surprise anyone wants to receive!

Vision services, hearing aids, and some drugs are also not covered by Medicare. And the big one, long-term nursing care, can cost about $90,000 per year.

So, how much should the average retiree budget for healthcare?

It can be hard to say, because healthcare costs can vary wildly depending on your age and lifestyle. But researchers from Mercer Health and Benefits, and Vanguard Research, recently broke it down into easily relatable terms.

The average 65-year-old woman retiring this year will spend about $5,200 per year on her healthcare, at first. That figure includes Medicare premiums, any additional forms of health insurance, and her out-of-pockets costs. However, by age 85 that figure will increase to $10,100 per year. And remember, that estimate is for a person of average health.

These figures aren’t intended to scare you, only to underline the importance of financial planning both before retirement and throughout it. We can help you identify strategies to manage your healthcare expenses, by comparing different Medicare plans and more.

Most importantly, remember to plan around inflation. Even when the overall inflation rate remains flat, the cost of healthcare tends to keep increasing. For those in retirement, even a few percent per year becomes noticeable over time. So, keep in touch with us, and we’ll help you budget around your healthcare expenses.

Need more information?

Contact us online to learn more

Contact Us

Close Accessibility Tools
Accessibility Controls Reset
Content Adjustments
Font Size


Line Height


Content Scaling


Highlight Titles
Highlight Links
Highlight Forms
Align Left
Align Center
Align Right
Focus Mode
Color Adjustments




Accessibility Statement

Despite our attempts to make this website accessible for everyone, there may still be some pages or sections that are not completely accessible, are in the process of becoming accessible, or do not have a suitable technological solution to make them accessible. Nevertheless, we are always striving to enhance our accessibility by adding, updating, improving its options and features, and incorporating new technologies.

We want to provide our users with the best experience possible, so we strive to support as many browsers and assistive technologies as possible.

If you wish to contact this website's owner, please use the contact form on the website.

Our User Interface Adjustment Options

Font adjustments - With this tool, users can modify font size, style, letter spacing, and line height for improved alignment and readability.

Color adjustments - Users can customize their color contrast profiles to light, dark, desaturated, and monochrome.

Content highlighting - Users can prioritize key elements such as links, forms, and titles.

Content focus - Users can enable focus mode to highlight the current page information based on their mouse movement.