Retirement Healthcare Costs Worry Most Americans

Yet fewer than half have factored rising costs into their retirement planning

Apr. 1, 2026 at 10:27pm

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A new survey from D.A. Davidson reveals that nearly 8 in 10 Americans (78%) are concerned about the impact of rising healthcare costs on their retirement, but fewer than half (48%) have actually incorporated these increasing costs into their retirement planning. The survey also found that only 16% of Americans feel very knowledgeable about expected healthcare expenses in retirement.

Why it matters

Healthcare is one of the most significant expenses retirees will face, with costs typically rising at twice the rate of overall inflation. However, many Americans are underestimating the impact these costs could have on their retirement strategies and financial security.

The details

According to the latest estimates from Fidelity Investments, healthcare expenses for an American couple retiring at age 65 in 2025 are expected to average $345,000, up nearly 41% from the $245,000 estimate in 2015. If healthcare costs end up being higher than expected in retirement, over one-third of Americans (37%) say they'd have to cut back on everyday spending, and 34% would reduce travel or leisure.

  • The D.A. Davidson survey was conducted online on February 13-15, 2026.

The players

D.A. Davidson

A financial services firm offering wealth management, investment banking, and other advisory services nationwide.

Andrew Crowell

Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson.

Fidelity Investments

A major financial services firm that provides the latest estimates on average healthcare costs for retirees.

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What they’re saying

“Healthcare is one of the most significant, and yet still underestimated, expenses that most retirees will face. Healthcare inflation typically runs at least twice the rate of overall inflation, yet many people experience denial over the fact that this could impact their retirement strategy one day.”

— Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson

“Unexpected medical expenses can derail even well-structured retirement strategies, but the good news is that proactive planning can help pre- and current retirees better protect their financial security.”

— Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson

“HSAs are one of the most powerful tools we have available for retirement planning. Their triple tax advantage makes them an effective planning tool for covering healthcare costs in retirement. For individuals who are eligible, consistently funding and strategically investing an HSA can greatly reduce the burden of healthcare costs in retirement.”

— Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson

What’s next

Financial advisors recommend that individuals work closely with a professional to understand and plan for expected healthcare costs in retirement, including exploring tools like Health Savings Accounts (HSAs) that can help offset these expenses.

The takeaway

This survey highlights the growing disconnect between Americans' concerns over rising healthcare costs in retirement and their actual planning and preparation for these expenses. Taking proactive steps to factor in healthcare inflation and strategically utilize savings vehicles like HSAs can help retirees better protect their long-term financial security.