Buyer Education
Healthcare Costs in Retirement in California: What a 65-Year-Old Should Plan For
How much do healthcare costs in retirement really run? Fidelity's published estimates, what Medicare does not cover, and planning help from The Gary Lee Team.
Gary & Rutsell Lee | October 13, 2026 | 5 min read | CA DRE #01448722 & #02067791
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A 65-year-old retiring in 2025 can expect to spend an average of $172,500 on healthcare and medical expenses throughout retirement, according to Fidelity's 2025 Retiree Health Care Cost Estimate, and couples face roughly twice that.
The Bottom Line
Fidelity's July 2025 retiree estimate puts a single 65-year-old's lifetime healthcare cost at $172,500 on average (about $12,850 for the first year), and later estimates put an average couple near $345,000, all before long-term care costs, which are excluded.
What the Numbers Say
- $172,500: average lifetime healthcare spend for a 65-year-old retiring in 2025 (Fidelity, July 30, 2025).
- About $345,000: Fidelity's average couple estimate for retirement healthcare, excluding long-term care (Fidelity, 2025-2026 learning center data).
- About $12,850: first-year healthcare spending for an average 65-year-old couple (Fidelity, 2025 methodology).
- $185,500: Fidelity's 2026 estimate for a single 65-year-old (Fidelity, March 2026).
What Medicare Does Not Cover
- Medicare Part B and Part D premiums are deducted from or billed to you.
- Common gaps: dental, vision, hearing, and long-term care.
- Prescription coverage structure matters as much as the premium.
- Medigap and Medicare Advantage choices change your out-of-pocket.
Why This Matters for 55+ Buyers
- Your move budget should not crowd out healthcare savings.
- Community choice affects proximity to care but not the underlying insurance math.
- Fidelity notes its estimate excludes long-term care, which is planned separately.
The South Placer and Sacramento Healthcare Corridors
Where you choose to live in Northern California shapes how close you are to major medical infrastructure. Two corridors matter most for 55+ buyers:
- South Placer: communities like Sun City Roseville, Sun City Lincoln Hills and Roseville's other master plans sit minutes from Sutter Roseville Medical Center and Kaiser Permanente Roseville, two of the region's busiest hospital campuses.
- Sacramento / Folsom corridor: Folsom and El Dorado Hills communities (including Folsom Ranch) are near Mercy Hospital of Folsom, with the larger Sacramento hospital network a short drive west.
- Before you choose, confirm your Medicare Advantage or supplemental plan's network includes the hospitals and specialists you already see; proximity is only useful if the plan covers the provider.
For a market-by-market view of where these corridors sit relative to the 55+ communities, see the Sacramento, Placer and El Dorado county comparison.
Tour the Communities
See some of the region's best-known 55+ communities on video before you compare their costs.
Tour filmed by Gary & Rutsell Lee. Subscribe to the NorCal55Plus YouTube Channel
Tour filmed by Gary & Rutsell Lee. Subscribe to the NorCal55Plus YouTube Channel
Tour filmed by Gary & Rutsell Lee. Subscribe to the NorCal55Plus YouTube Channel
Explore our full video library and downloadable floor plan guides at the NorCal55Plus Video Companions Hub.
Watch more unfiltered clubhouse and street-level tours in our Community Video Vault.
Retirement Healthcare Benchmarks
Healthcare is part of the real cost of 55+ living. Compare the markets with the Sacramento, Placer and El Dorado county comparison, and use the downsizing roadmap to keep healthcare savings inside the move plan.
| Estimate | Figure |
|---|---|
| Single 65-year-old retiring 2025 (lifetime) | $172,500 average |
| Couple (lifetime, excluding long-term care) | about $345,000 |
| First-year spending, average couple | about $12,850 |
| Single 65-year-old, 2026 estimate | $185,500 |
Figures exactly as published in this article: Fidelity 2025 Retiree Health Care Cost Estimate (July 30, 2025); Fidelity Learning Center (2025-2026); Fidelity 2026 estimate (March 2026).
Retirement Healthcare FAQs
How much should a 65-year-old plan for healthcare in retirement?
Fidelity's July 2025 estimate puts a single 65-year-old's lifetime healthcare cost at $172,500 on average, with couples at roughly twice that, all before long-term care costs, which are excluded.
What does Medicare not cover?
Common gaps include dental, vision, hearing, and long-term care, and prescription coverage structure matters as much as the premium.
How much is first-year healthcare spending?
About $12,850 for an average 65-year-old couple, per Fidelity's 2025 methodology.
Why does this matter for a 55+ move?
Your move budget should not crowd out healthcare savings, and community choice affects proximity to care but not the underlying insurance math.
Healthcare belongs in the year-one budget; see our related guide on building a first-year retirement spending plan.
Healthcare is part of the real cost of 55+ living. Compare the markets with the Sacramento, Placer and El Dorado county comparison, including Roseville 55+ communities.
Sources
Fidelity Investments, "2025 Retiree Health Care Cost Estimate" (July 30, 2025); Fidelity Learning Center, healthcare-in-retirement guidance (2026); Fidelity, 2026 Retiree Health Care Cost Estimate (March 2026).
About the Author
Written by Gary Lee, CA DRE #01448722 and Rutsell Lee, CA DRE #02067791 of The Gary Lee Team, eXp Realty of Northern California, Inc., specializing in 55+ active-adult communities across Northern California.
Meet your specialists
Meet Gary & Rutsell, your Northern California 55+ REALTORS
Gary Lee has been a full-time California REALTOR® since 2004. Rutsell Lee is also a California REALTOR® and co-founder of The Gary Lee Team. Together they research Northern California 55+ communities, tour homes and amenities, and help buyers and sellers compare their options throughout Greater Sacramento and Northern California.
The Gary Lee Team · eXp Realty of Northern California, Inc.
Have questions about transitioning to a NorCal 55+ community? Talk directly with Gary & Rutsell Lee at (916) 595-4279.
