Fidelity: 65-year-old retiring in 2026 may need $185,500 for health care

According to CNBC, Fidelity Investments estimates that a 65-year-old who retires in 2026 may spend an average of $185,500 on health and medical expenses in retirement, up 7.5% from last year’s retirees. Fidelity said the increase reflects rising health care costs, higher expenses for chronic conditions and greater use of medical services. The estimate assumes traditional Medicare coverage, including Parts A, B and D, and does not include long-term care. Fidelity’s Helen Lloyd-Williams said the rise is higher than in the past few years, and the firm found that 54% of pre-retirees incorrectly expect Medicare to cover all of their health expenses.