Core Insights - Rising healthcare costs are a significant concern for middle-class couples, particularly those over 65, as they represent one of the largest and most unpredictable expenses for American retirees in 2025 [1][2] - Effective planning for medical expenses is increasingly critical due to healthcare costs outpacing wages and inflation, compounded by reduced coverage from Medicare [2][6] Healthcare Spending Overview - The average 65-year-old couple in 2025 is projected to spend approximately $12,800 on healthcare in their first year of retirement, which constitutes about 21% of the total average retirement spending of around $60,000 [6] - Healthcare expenses for retirees typically fall into four main categories: insurance premiums, medical services not fully covered by Medicare, prescription medications, and medical supplies and equipment [6][8] Long-Term Projections - Healthcare costs tend to accumulate during retirement years, driven by increased life expectancies and the need for ongoing medical treatment and prescriptions [8] - Financial institutions have raised concerns about the long-term financial burden of healthcare costs for middle-class retired couples, emphasizing the importance of early planning and saving [4][8]