Faced with high health care costs in the United States due to high inflation, new research developed by Fidelity Investments indicated that adults over 65 who retire this year could spend up to $185,500 on health services throughout their retirement.

In this regard, Shams Talib, director of Fidelity Workplace Consulting, commented that “financial planning for retirement goes beyond reaching a savings goal, especially as retirement itself continues to evolve,” he said.

According to Fidelity research, this new average amount in health care spending represents an increase of 7.5% compared to the previous year, due in part to the increase not only in health insurance premiums, but costs derived from chronic diseases and medications.

It is for this reason that approximately 50% of Americans cannot afford this essential service, according to a Gallup analysis, which points out that this concern not only affects older adults, but also younger generations.

In this sense, Talib mentioned that "whether Americans stop working completely, gradually retire or look for new ways to stay active, health care remains one of the biggest expenses they face. Offering them a reference point can help them plan with greater clarity and confidence," he highlighted.

On the other hand, the Fidelity report details that, of the estimated $185,500 in expenses, 45% goes to the payment of monthly Medicare Part B and Part D premiums, 48% is used for co-payments, deductibles, outpatient services and coinsurance, while 7% goes to out-of-pocket expenses for generic or specialty medications and amounts that are not covered by insurance.

According to Steve Betts, director of Fidelity Health, "Medicare is a critical part of retirement health coverage, but it does not eliminate all health expenses. This estimate helps illustrate why both near-retirees and those already retired will benefit from carefully considering the expenses they will not be able to afford and how they will pay for them as they develop their retirement income strategy," he said.