5 Healthcare Costs ‘Smart’ Seniors Budget For

Group 1 - The core issue in retirement planning is not just about replacing income but also preparing for rising healthcare costs, which often outpace general inflation [1] - Healthcare expenses in retirement can create a long-term financial burden, even with Medicare coverage, due to various costs such as premiums, deductibles, and long-term care [2][3] - Common healthcare expenses retirees need to plan for include Medicare Part B premiums, prescription drug costs, and other medical expenses that can accumulate significantly over time [2] Group 2 - Medicare Part B premiums are a significant and unavoidable expense for retirees, covering essential medical services, and can lead to substantial costs over a long retirement [4][5] - In 2026, the standard Medicare Part B premium is projected to be $202.90 per month, with an annual deductible of $283, and these costs tend to rise frequently [5] - Over a 20-year retirement, Part B premiums can total approximately $65,000 to $85,000 per person, with deductibles adding another $7,000 to $10,000 [6] Group 3 - Prescription drug costs are highly variable and can become a major expense as retirees may need to manage multiple medications over time [7] - Healthcare costs are expected to grow at a moderate rate of 3% annually, but can rise as high as 5.5% due to higher medical inflation, which often exceeds general cost increases [8]