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5 Common Questions People Ask Near Retirement (5/5)

Updated: Aug 31, 2023

5. What are my healthcare costs in retirement?

If you are like most Americans, health care is expected to be one of your largest expenses in retirement. There are a number of reasons for this rising healthcare cost: life expectancies are increasing, healthcare inflation continues to rise, and more people are retiring pre-Medicare.

So the question remains, what are my healthcare costs in retirement? There are 2 main stages of healthcare costs in retirement, one before Medicare and one while on Medicare.


Most people receive health insurance benefits through an employer. This also means that if you want to retire before age 65, you’ll have to figure out how to pay for your health insurance coverage on your own, which typically means going to the marketplace. This is much more expensive than Medicare. However, if you have an advisor that can plan well for healthcare subsidies, it can potentially save you thousands of dollars each year.


Once you reach age 65, then you qualify for Medicare. The average cost of Medicare for a retiree varies depending on the parts of Medicare they enroll in and their income. There are 4 parts to Medicare:

  • Part A covers hospital stays, skilled nursing facilities, and some home health care. This part is mandatory for all people enrolled in Medicare.

  • Part B covers doctor services, outpatient care, and some preventative services.

  • Part C is Medicare Advantage which are private health plans that offer all the benefits of A & D, plus some additional benefits. This plan typically has lower premiums than traditional Medicare, but higher out-of-pocket costs.

  • Part D covers prescription drugs.

The various options for healthcare can be overwhelming. Additionally, there is planning complexity if you retire prior to Medicare to qualify for subsidies. If you are looking for guidance in getting quality coverage while keeping costs to a minimum, please reach out to us by clicking the button below or emailing us directly at, we would be happy to help you.


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