Are You Planning for Healthcare Costs in Retirement?
Medicare Health Exchange
If you’re like most, you may be underestimating these expenses.
Despite saving and preparing for retirement, many retirees often underestimate how much they will need for healthcare expenses, including premiums and out-of-pocket costs. According to a a recent survey, 54% of Americans are fearful of outliving their savings in retirement.1
Supplemental Health Insurance to Help Bridge Coverage Gaps
Explore Accident, Critical Illness, and Hospital Indemnity plans.
Many plan to rely on Medicare. But while original Medicare covers many medical expenses, it has limitations. Medicare Parts A and B cover some health care expenses, but not deductibles, coinsurance, and copayments. Without Prescription Drug (Part D) coverage, Medicare does not cover medications. When you add these costs up, it is estimated that Medicare covers just 50%-60% of retiree healthcare needs.
Medicare Supplement insurance and prescription plans can help bridge the gap by covering some of the remaining costs for things like deductibles, coinsurance and copayments, prescriptions, routine eye exams, and hearing aids. Alight’s Making Sense of Medicare Guide provides an overview of supplemental plan options.
Healthcare spending can easily account for a big share of a retirement budget, but Medicare Supplement insurance can help ease the burden. It’s important to start estimating your retirement healthcare costs early so you can create a sound strategy. Supplemental insurance can help preserve more of your retirement assets for other expenses. Our Medicare Health Exchange provides personalized plan options and assistance.
1 2025 Protected Retirement Income and Planning Study (PRIP). Alliance for Lifetime Income. www.protectedincome.org/wp-content/uploads/2025/08/2025-PRIP-Study-Chapter-1-FINAL-070925.pdf
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