How much does retiree healthcare cost?

Projecting retiree healthcare costs is complex. Milliman’s estimates are developed to help educate employees and retirees about the potential cost of retiree healthcare. Below are some recent findings:

  • A healthy 65-year-old couple retiring in 2019 is projected to spend $369,000 in today’s dollars ($551,000 in future dollars) on healthcare over their lifetime, and expenses at age 85 are estimated to be 250% higher than at age 65.
  • A healthy 67-year-old retired couple is projected to spend 39% of their pre-tax Social Security benefit on healthcare in 2019.
  • A healthy 45-year-old couple who retires at age 65 is projected to pay $532,000 in 2019 dollars, and $1.4 million over their retirement years, for retiree healthcare.
  • The estimated 2019 annual premium plus out-of-pocket cost for a healthy 65-year-old is $5,000.

To see more retiree health cost estimates, read Robert Schmidt’s paper here.

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