Plootus: Retired Couples Face $413,000 Lifetime Healthcare Bill as Medicare Gaps Catch Saver O

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New analysis from Plootus reveals healthcare remains the most underestimated expense in retirement planning, with a single 65-year-old needing $157,500 for medical costs excluding long-term care.

NEW HAVEN, Conn. - eTradeWire -- Plootus today released its 2026 Healthcare Costs in Retirement Report, incorporating research from Fidelity, CMS, and KFF. The findings indicate that a 65-year-old couple retiring today will require an estimated $413,000 to cover medical expenses throughout retirement—a figure that excludes long-term custodial care.

The report emphasizes that healthcare costs rise 5–7% annually—outpacing general inflation—and peak late in life. Many pre-retirees incorrectly assume Medicare covers all medical needs, overlooking significant premiums, deductibles, and non-covered services like dental, vision, and long-term care.

"Most retirement calculators model healthcare as a flat, predictable expense," said the Plootus Research Team. "In reality, medical spending rises sharply as retirees age, creating a serious longevity risk for those without dedicated healthcare reserves."

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Key Findings:
  • Lifetime Medical Costs: Average 65-year-old couple needs $413,000; single retirees need approximately $157,500.
  • Medicare Part B Baseline: Standard Part B premiums sit at $185.00/month with a $257 annual deductible.
  • Original Medicare Gaps: Parts A and B do not cover routine dental, vision, hearing aids, or custodial long-term care.
  • Out-of-Pocket Trajectory: Average annual out-of-pocket medical spending jumps from ~$9,000 at age 65 to over $19,000 by age 85+.
The report recommends actionable solutions, such as securing Medigap Plan G to cap Part B out-of-pocket exposure, utilizing HSAs as dedicated healthcare investment funds, and avoiding late-enrollment Medicare penalties.

"Failing to account for retiree medical inflation is the single most dangerous gap in financial planning," the Plootus Research Team concluded. "Securing comprehensive supplemental coverage early protects your core investment portfolio from unexpected liquidation."

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The full report is available at https://www.plootus.com/healthcare-costs-in-retirement.

ABOUT PLOOTUS

Plootus is a free, AI-powered retirement planning platform that helps Americans analyze and optimize their 401k, 403b, 457, and other workplace retirement plans.

Analyze Future LLC (dba Plootus) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training.

Disclaimer: Analyze Future LLC (dba Plootus) may receive compensation for referrals to third-party products and services listed on its Partners page. These referrals are for informational purposes only and do not constitute an endorsement or recommendation. Plootus has not conducted due diligence on, nor assumes responsibility for, any third-party offerings. Users are encouraged to evaluate these options independently before making any decisions.

Source: Analyze Future LLC
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