Client Center

Health, Wealth, and Confidence:

Planning for Healthcare in Retirement

Healthcare is one of the most underestimated expenses in retirement, and it’s only getting steeper. Fidelity’s latest research estimates that a 65-year-old retiring in 2025 will need about $172,500 to cover medical expenses in retirement. This is a 4% increase from 2024 and more than double what retirees needed two decades ago.1 

That figure includes premiums, deductibles, and out-of-pocket costs under Medicare. Additionally, it doesn’t even include long-term care, which can quickly turn a stable retirement into a financial strain. So how do you plan for something that’s unpredictable, expensive, and constantly changing?

 

That’s where your Horizent Team at Intrua Financial comes in.

Why Early Planning Matters

Healthcare inflation consistently outpaces general inflation, rising about 6% per year, roughly twice the pace of other household costs.2  Even modest increases can impact how long your retirement assets last.

But while many households understand the need for healthcare planning, few actually include it in their retirement strategy. Studies show that one in five Americans has never considered healthcare costs when planning for retirement. The result? A gap between what retirees expect and what they’ll actually pay.

 

However, we can help close that gap by treating healthcare as a core part of your retirement cash flow rather than a one-time estimate. Together, we’ll forecast annual premiums, account for out-of-pocket costs, and build a “medical reserve” fund to help you weather any surprises. 

Pro tip: It’s easier to plan when you think in annual numbers instead of lifetime totals. We can help you separate your healthcare costs into two buckets:

  • Predictable premiums (like Medicare and supplemental insurance), and
  • Variable costs (like copays, dental, and vision).

This approach transforms an intimidating six-figure estimate into a manageable plan.

Long-Term Care: The Missing Piece

While Medicare covers many medical expenses, it doesn’t cover long-term care, which can be one of the biggest risks to your retirement security. Nursing homes, assisted living, or extended in-home care can cost hundreds of thousands of dollars per year, and most retirees haven’t planned for it.

We can help you model what an extended care event could mean for your finances. Whether it’s exploring traditional or hybrid long-term care insurance, self-funding strategies, or trust-based planning, we will help you build protection into your plan, so that you’re ready for whatever comes your way.

Making the Most of HSAs

If you’re still working and eligible for a Health Savings Account (HSA), you’ve got one of the most tax-efficient retirement tools available. HSAs offer triple tax advantages: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

In addition to helping you determine how to invest your HSA balance for long-term growth, our team can also advise you on how to use those funds in retirement to pay for Medicare premiums and out-of-pocket costs, freeing up other savings for lifestyle goals.3

However, we can help close that gap by treating healthcare as a core part of your retirement cash flow rather than a one-time estimate.

Medicare and Taxes: A Balancing Act

Medicare decisions can be complex and costly if handled incorrectly. Premiums vary, penalties apply if you enroll late, and higher-income retirees can face IRMAA surcharges (income-related monthly adjusted amount) surcharges.4

We can help coordinate your healthcare and tax strategies to help you avoid unnecessary costs and preserve your income. This might include running “what-if” scenarios for Roth conversions or portfolio withdrawals to stay under key income thresholds, all while ensuring your coverage fits your medical needs and financial goals.

Putting It All Together

Planning for healthcare in retirement isn’t just about paying bills: it’s about protecting your independence, your income, and your financial confidence.

Our team can help you:

  • Estimate future costs and build healthcare inflation into your plan.
  • Plan for long-term care so it doesn’t derail your legacy.
  • Maximize HSAs and other tax-efficient tools.
  • Coordinate Medicare decisions with your broader financial strategy.

Because at Intrua, we believe financial confidence comes from being prepared: not just for the expected, but for the “what-ifs.”

We already have your best interests in mind and have likely discussed your healthcare and tax strategy. But if you have questions, or simply want a second look, reach out anytime. We’ve got you covered.

1     https://newsroom.fidelity.com/pressreleases/fidelity-investments–releases-2025-retiree-health-care-cost-estimate–a-timely-reminder-for-all-gen/s/3c62e988-12e2-4dc8-afb4-f44b06c6d52e#_edn1
2    https://hvsfinancial.com/2022/03/03/the-long-term-impact-of-short-term-inflation/
3    https://www.schwab.com/learn/story/health-care-costs-retirement-are-you-prepared
4    https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly