Why Retiree Healthcare Costs Are Rising and Medicare May Not Be Enough

Core Insights - The average American will face healthcare costs in retirement that exceed their total savings, with Medicare providing limited assistance [1][2] Healthcare Cost Details - A study by the Employee Benefit Research Institute (EBRI) highlights the significant out-of-pocket healthcare costs retirees should expect, despite Medicare coverage [2][4] - EBRI's model indicates that men will need an average of $166,000 in dedicated savings for healthcare in retirement, while women will need $197,000, and two-person households will require about $318,000 [5] - The median household savings for those aged 65 and older is $87,725, which is insufficient to cover average healthcare costs in retirement [6] The Role of Medicare - Medicare is often perceived as a simple universal healthcare program, but it does not provide comprehensive coverage, requiring retirees to cover many costs themselves [9]