Fidelity Investments released its 25th annual estimate of retiree healthcare costs, which revealed a significant jump from a year ago as medical care and related expenses become more expensive. The report estimated that a 65-year-old who retires in 2026 can expect to spend an average of $185,500 on healthcare and medical expenses throughout their retirement. "Financial planning for retirement is about more than reaching a savings target, especially as retirement itself continues to evolve," said Shams Talib, head of Fidelity Workplace Consulting. The final 7% of the total comes from out-of-pocket expenses, like co-payments and amounts that aren't covered by Medicare Part D and are out-of-pocket expenses for generic, branded or specialty drugs. "This estimate helps illustrate why both pre-retirees and retirees alike will benefit from carefully considering out-of-pocket expenses and how they will pay for them as they build out their retirement income strategy," Betts added.