Keys to covering health care in retirement
A plan to help manage these costs before they arise.
Article 
5 min
Article 5 min Insights from Fidelity Wealth Management®
Timely news, events, and wealth strategies from top Fidelity thought leaders.
Plan for health care costs as part of your long-term financial strategy
Proactively planning for both expected and unexpected health care costs with your advisor can help protect your retirement savings and provide great peace of mind for both you and your loved ones.
Expense projections
Health care may be your largest expense in retirement. We start with a review of what those costs could be and how they could potentially affect your retirement.
Funding your care
We can help you understand what sources may be available to help cover these costs, including long-term care insurance, health savings accounts, and Medicare.
Tax-advantaged savings
By looking at your situation comprehensively, we can help incorporate tax-advantaged savings for health care expenses into your plan, if you’re eligible.
How we’ll factor health care into your overall plan
How we’ll factor health care into your overall plan
You have a range of choices to help cover health care costs in retirement. We can help you navigate your different options, as well as the role tax-advantaged savings accounts and Medicare can play at the right time, based on your retirement plans.
70% of US adults ages 65 and older will require long-term care at some point in their lives.2 We're here to help make sure your plan can adjust to meet your changing needs. We can also bring in specialists and licensed Medicare agents to help with planning and the transition to this stage of life.
Health care solutions for you and your family
Put our planning tools to work for you
You and your advisor can use our tools to estimate the impact of potential health care costs on your retirement savings and evaluate solutions that might be right for you.
- Find out where you stand and potential next steps to help improve your retirement outlook
- Our Planning & Guidance Center can help you factor long-term care estimated costs into your overall plan
Find the right Medicare plan with our help
Our team of licensed insurance agents who specialize3 in Medicare can help you compare and enroll in coverage that meets your health care needs, lifestyle, and financial goals.
- Comprehensive coverage options from vetted insurance carriers, including Medicare Advantage, Medicare Supplement (Medigap), Part D prescription drug plans, as well as stand-alone dental, vision, and travel health insurance
- Support for you year-over-year to ensure that your coverage continues to meet your changing needs
Be prepared for rising care costs
We can help you create a plan to cover your potential long-term care costs, easing the financial and emotional burden on you and your family.
- Your advisor will discuss how this fits into your full financial plan
- Licensed long-term care consultants can review your care options, coverage choices, health care considerations, and potential costs
- These consultants can offer help and support through the application process, if appropriate
Invest for health care with the No. 1 provider⁴ in the US
Health savings accounts (HSAs) offer a triple-tax-advantaged5 way to save, invest, and pay for qualified medical expenses.
- Money does not have to be used in the year you contributed to your account—it’s not “use it or lose it”
- No account fees or minimums6
- After age 65, you can use your HSA for anything, and there is no penalty—withdrawals are treated as taxable income
Insights and strategies from Fidelity Wealth Management
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Funding long-term care
Many of us will face these potentially high costs.
Help keep your promises with your protection and insurance strategies
You’re working hard to bring your vision for the future to life. We’re here to help you protect that, whether it’s with an annuity, long-term care, or life insurance.
Not sure where to start?
A conversation with an advisor is the first step to helping you find the right approach to reach your goals.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
1. The Retiree Health Care Cost Estimate (RHCCE) is based on a single person retiring in 2025, 65-years-old, with life expectancies that align with Society of Actuaries' RP-2014 Healthy Annuitant rates projected with Mortality Improvements Scale MP-2020 as of 2022. Actual assets needed may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes. The Fidelity Retiree Health Care Cost Estimate assumes individuals do not have employer-provided retiree health care coverage, but do qualify for the federal government’s insurance program, original Medicare. The calculation takes into account Medicare Part B base premiums and cost-sharing provisions (such as deductibles and coinsurance) associated with Medicare Part A and Part B (inpatient and outpatient medical insurance). It also considers Medicare Part D (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by original Medicare. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.
2. “How much care will you need?," US Department of Health and Human Services: Long-Term Care, February 2020
3. Fidelity Medicare Services (“FMS”) is operated by Fidelity Health Insurance Services, LLC (“FHIS”), and FMR LLC is the parent company of FHIS. FHIS, Strategic Advisers LLC ("SA"), and Fidelity Brokerage Services LLC ("FBS") are separate business entities. FMS is not a product or service of FBS or SA. Other than certain demographic information such as name, address and date of birth, the information you provide to FMS will not be shared with FBS or SA. Therefore, if you want FBS or SA to consider the information you have provided to FMS in your financial planning with FBS or SA, you must separately provide that information to FBS or SA.
4. Morningstar rated 10 retail HSA providers for two distinct use cases: HSAs as a spending account to cover current medical costs and HSAs as an investment account to save for the long term. Results published in 2019, 2020, 2021, 2022, 2023, 2024, and 2025 Health Savings Account Landscape.
5. With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.
6. There are zero account fees and zero account minimums for Fidelity HSAs® offered through Fidelity.com to individuals and employers. There may be commissions, interest charges, and other expenses associated with transacting or holding specific investments (e.g., mutual funds), or selecting certain account features or types (e.g., managed accounts). When a Fidelity HSA® is offered as part of an employer’s benefits package (which occurs through NetBenefits®), Fidelity charges the employer a recordkeeping fee. This is a common fee charged by HSA providers. This fee may be up to $48/year, but it could be reduced or waived depending on the HSA balance. Employers may pass this fee on to their employees. Contact the employer for more information. Accounts that have been opened through, or are serviced by, an intermediary, or in connection with your workplace benefits, may incur additional fees or restrictions. Account minimums may apply to certain investments, including the purchase of some Fidelity mutual funds that have a minimum investment requirement. If you choose to invest in mutual funds, underlying fund expenses still apply. For more information and details, see the fund's prospectus and/or www.fidelity.com/commissions.
Fidelity advisors are licensed with Strategic Advisers LLC (Strategic Advisers), a registered investment adviser, and registered with Fidelity Brokerage Services LLC (FBS), a registered broker-dealer. Whether a Fidelity advisor provides advisory services through Strategic Advisers for a fee or brokerage services through FBS will depend on the products and services you choose.
Some products and features may not be available in all states and variations may apply.
IMPORTANT: The projections or other information generated by Fidelity's Planning & Guidance Center Retirement Analysis regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation and your evaluation of the security. Be sure to review your decisions periodically to make sure they are still consistent with your goals.
Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
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