Healthcare Cost in Retirement Calculator
Project the lifetime cost of healthcare in retirement, inflating annual premiums and out-of-pocket spending at a medical-cost rate.
How it works
Total = Σ annual cost × (1 + medical inflation)^year, summed from retirement age to the planning age
Healthcare is one of the largest and most uncertain retirement expenses, and it tends to inflate faster than the broad cost of living. Even with Medicare or similar coverage, premiums, supplemental plans, dental, and out-of-pocket costs add up — and because they compound over a 20-to-30-year retirement, a modest annual figure becomes a very large lifetime total. Projecting it separately, at a medical-specific inflation rate, keeps it from being quietly underestimated inside a single spending number.
Worked example
Starting at $7,000 a year at age 65, inflating 5% annually through age 90 (25 years), the lifetime total is roughly $334,000 — with the final year alone costing over $22,000 versus $7,000 at the start.
Frequently asked questions
Does Medicare cover most of this?
Medicare covers a lot but not everything — premiums, deductibles, supplemental (Medigap) or Advantage plans, prescriptions, dental, vision and hearing all add costs. This figure represents your share after any coverage.
Why use a higher inflation rate for healthcare?
Medical costs have historically risen faster than general inflation. Using a medical-specific rate — often a few points above headline inflation — avoids understating decades of compounding.
What about long-term care?
This calculator covers routine medical costs. Long-term care — assisted living or nursing care — is a separate, potentially much larger expense; estimate it with a dedicated long-term care projection.
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Educational estimate, not financial advice.