Real-life examples of examples of healthcare costs in retirement

Everyday examples of healthcare costs in retirement you’ll actually face

Let’s skip the theory and go straight to the lived reality. When you build a retirement budget template, you want real examples of examples of healthcare costs in retirement, not vague averages that don’t match your life.

Think about a typical retired couple in their late 60s in the U.S. They’re on Medicare, they see a primary care doctor a few times a year, one partner has high blood pressure and high cholesterol, the other has arthritis, and both wear glasses. None of this is dramatic. But month after month, year after year, it adds up.

Below are the best examples of recurring and surprise healthcare expenses that show up in retirement budgets over and over again.

Medicare premiums and out-of-pocket examples of healthcare costs in retirement

For most Americans, Medicare becomes the backbone of healthcare in retirement. But “I’ll be on Medicare” is not the same as “healthcare will be cheap.” Here’s an example of how the costs break down for one person in 2024–2025.

Example of a typical Medicare setup for a 68-year-old

Imagine Linda, age 68, retired, living on Social Security plus a modest pension.

Her examples of healthcare costs in retirement tied to Medicare might look like this:

• Medicare Part B premium: Most people pay the standard premium. In 2024, that’s \(174.70 per month for most beneficiaries, and it often rises over time. That’s over \)2,000 a year before she even sees a doctor. Medicare.gov publishes these current rates.
• Medigap (Medicare Supplement) plan: Linda wants predictable costs, so she buys a Medigap plan. Depending on her state, age, and plan type, she might pay \(150–\)250 per month in premiums.
• Part D prescription drug plan: A standalone Part D plan might run \(30–\)60 per month, plus copays for medications.

If she chooses a Medicare Advantage plan (Part C) instead, she might pay a lower or even $0 plan premium, but then owe different copays and out-of-pocket costs when she uses services.

Just with Part B, Medigap, and Part D, Linda could easily spend \(350–\)500 per month—\(4,200 to \)6,000 a year—on premiums alone. That’s one of the clearest examples of examples of healthcare costs in retirement that people underestimate.

Real examples of doctor visits, tests, and routine care

Premiums are only the starting line. Next come the out-of-pocket charges every time you actually use the system.

Example of annual routine care for a retiree

Take David, age 72, generally healthy but managing high blood pressure and prediabetes.

In a typical year, his examples include:

• Primary care visits: He sees his primary care doctor 2–3 times a year. With Medicare and a Medigap plan, his out-of-pocket might be very low or even $0 per visit. Without a supplement, he might face a 20% coinsurance on the Medicare-approved amount.
• Specialist visits: He sees a cardiologist once a year and maybe an endocrinologist. Even with coverage, specialist visits can involve copays or coinsurance, often \(20–\)50 per visit under many Medicare Advantage plans.
• Lab work and blood tests: Routine labs might be covered with small copays, but more advanced tests can add up. It’s not unusual to see \(100–\)300 per year in lab-related out-of-pocket costs.

Over a year, David might easily spend \(300–\)800 on routine out-of-pocket medical costs, depending on his plan. These are simple, quiet examples of healthcare costs in retirement that don’t make headlines, but they nibble away at your budget.

For current information on preventive services and coverage, Medicare keeps a list of what’s covered and when at Medicare.gov preventive services.

Prescription drug examples of healthcare costs in retirement

Medications are one of the most common and painful examples of healthcare costs in retirement, especially for anyone with chronic conditions.

Example of monthly prescription spending

Picture Maria, age 70, living with:

• Type 2 diabetes
• High cholesterol
• Mild depression

Her examples include:

• A generic blood pressure medication: maybe \(5–\)15 per month
• A statin for cholesterol: another \(5–\)15 per month
• Metformin (generic diabetes medication): around \(0–\)10 per month on some plans
• A newer, brand-name diabetes medication or injectable: this can be \(40–\)150+ per month depending on the plan
• An antidepressant: often \(5–\)25 per month if generic

Altogether, Maria could be spending \(60–\)200 per month on prescriptions, even with decent Part D coverage.

If she hits the Part D coverage gap (the “donut hole”), her share of brand-name drug costs can jump. The KFF (Kaiser Family Foundation) regularly analyzes these trends and shows how drug costs keep pressuring retirees’ budgets.

Over a 20-year retirement, that’s tens of thousands of dollars in medication alone—one of the best examples of why you can’t ignore prescription costs in your retirement planning template.

Dental, vision, and hearing: classic examples of hidden retirement healthcare costs

Here’s a tough truth: traditional Medicare generally does not cover routine dental, vision, or hearing care. These are some of the most surprising examples of healthcare costs in retirement because people assume they’ll be covered.

Example of a dental expense in retirement

John, age 74, hasn’t been to the dentist in a few years. He finally goes and learns he needs:

• A deep cleaning
• Two fillings
• One crown

Without dental insurance, it’s easy for this visit to land between \(1,000 and \)2,500, depending on where he lives. Even with a dental plan, annual maximums (often \(1,000–\)1,500) mean he still pays a chunk out of pocket.

Example of vision and hearing costs

• Eye exam and glasses: An exam plus new frames and lenses can run \(200–\)600, especially if you need progressive lenses or special coatings.
• Hearing aids: These are one of the biggest “I did not see that coming” examples of costs in retirement. A pair of quality hearing aids often costs \(2,000–\)6,000, and they may need replacing every 4–7 years. Coverage is limited under traditional Medicare.

The National Institute on Deafness and Other Communication Disorders (NIDCD) explains how hearing aids are priced and why so many older adults go without them because of cost.

These are perfect real examples of why your retirement budget template needs separate lines for dental, vision, and hearing—not just “medical.”

Long-term care: the biggest example of healthcare costs in late retirement

When people ask for the best examples of healthcare costs in retirement that can completely change a financial plan, long-term care is at the top of the list.

Long-term care is not about getting over an illness; it’s about ongoing help with basic daily activities—bathing, dressing, eating, using the bathroom, or moving around safely. Medicare covers short-term skilled nursing or rehab in limited cases, but not long-term custodial care.

Example of assisted living vs. nursing home costs

Let’s look at Carol, age 83, who develops moderate dementia and can no longer live safely alone.

Her family faces choices like:

• Assisted living: National median costs in recent surveys often land around \(4,500–\)6,000 per month, and higher in expensive metro areas.
• Nursing home (semi-private room): Frequently \(8,000–\)10,000+ per month in many states.

Over a three-year stay, that can mean $300,000 or more out of pocket if she doesn’t qualify for Medicaid or have long-term care insurance.

The U.S. government’s LongTermCare.gov offers updated data and tools to estimate these costs by state. When you’re building a retirement planning budget template, this is one of the most sobering examples of examples of healthcare costs in retirement you need to at least think through, even if you hope never to need it.

Home health aides and in-home care: quieter but costly examples

Not everyone moves into a facility. Many retirees try to stay at home with help from family plus paid caregivers.

Example of part-time in-home care

Consider Sam, age 79, with mobility issues after a stroke. He wants to stay in his home, but he needs help with bathing, dressing, and meal prep.

His family hires a home health aide for 4 hours a day, 5 days a week. At \(25–\)35 per hour (rates vary widely by region), that’s roughly \(500–\)700 per week, or \(2,000–\)3,000 per month.

Over a year, that can easily reach \(24,000–\)36,000. These are powerful real examples of healthcare costs in retirement that don’t always show up in basic calculators, but they absolutely belong in your budget template—especially if you want to age in place.

Medical equipment, supplies, and home modifications

Another category that sneaks up on retirees: the “stuff” of healthcare.

Example of common medical equipment in retirement

• Mobility aids: Canes, walkers, and wheelchairs. Some are covered or partially covered by Medicare with a doctor’s order, but there are still deductibles and coinsurance.
• CPAP machine for sleep apnea: Often covered as durable medical equipment, but supplies (masks, tubing, filters) can still cost hundreds of dollars per year.
• Glucose monitors and test strips: For people with diabetes, this can be a steady monthly cost, depending on insurance coverage and the type of device.

On top of that, there are home modifications:

• Grab bars in the shower
• Ramps instead of stairs
• Widened doorways for wheelchairs

A few small modifications might be \(500–\)2,000, but larger changes can run $10,000+. These are less obvious examples of healthcare costs in retirement, but they’re directly tied to your ability to live safely and independently.

For general guidance on aging safely at home and related health needs, organizations like the National Institute on Aging provide practical, evidence-based information.

Travel and out-of-country medical examples of healthcare costs in retirement

Many retirees dream of traveling more—finally taking that trip to Europe or visiting family abroad. But Medicare coverage outside the U.S. is very limited.

Example of medical costs while traveling

Imagine a retired couple traveling to Italy. One partner slips, breaks a wrist, and needs an ER visit, X-rays, and a cast.

Without travel medical insurance, they might face:

• ER visit and imaging: Easily \(500–\)2,000+ abroad, sometimes more
• Follow-up care back home: Copays and coinsurance under Medicare or Medicare Advantage

Some Medigap plans offer limited foreign travel emergency coverage, but there are deductibles and lifetime caps. Buying a separate travel medical policy for each trip, at \(50–\)300+ per person depending on age and coverage, is another example of how healthcare costs don’t stop just because you’re “on vacation.”

These are smaller but important examples of examples of healthcare costs in retirement that matter if travel is part of your retirement vision.

How to plug these examples into your retirement budget template

Seeing all these real examples can feel overwhelming, but the goal is to turn them into line items instead of surprises.

When you build or update your retirement planning budget template, consider separate rows for:

• Medicare and insurance premiums (Part B, Part D, Medigap or Advantage, dental/vision)
• Routine medical out-of-pocket costs (copays, coinsurance, tests)
• Prescriptions (average monthly total, with some wiggle room for price increases)
• Dental, vision, and hearing (annual average plus a buffer for big-ticket years like crowns or hearing aids)
• Long-term care / in-home care (you can model a “what if” scenario for the last 3–5 years of life)
• Medical equipment and home modifications (spread an estimate over several years)
• Travel medical insurance and potential overseas care if you plan to travel

You don’t have to predict everything perfectly. The point of using these real examples of healthcare costs in retirement is to get you in the right ballpark, so your plan isn’t built on wishful thinking.

FAQ: Common questions about examples of healthcare costs in retirement

Q: What are some common examples of healthcare costs in retirement that people forget to budget for?
People often forget about dental work (like crowns and implants), hearing aids, eyeglasses, and ongoing home health aide costs. Another overlooked example of cost is travel medical insurance for overseas trips and out-of-network bills from emergency care.

Q: Can you give an example of how much a typical retiree might spend on healthcare each year?
It varies widely, but many U.S. retirees with Medicare and a supplement easily spend \(5,000–\)7,000 per year per person when you add premiums, prescriptions, and out-of-pocket costs. For couples, that can mean \(10,000–\)14,000 per year, not counting long-term care. These are average-style examples, not guarantees, but they’re useful planning anchors.

Q: Are there any examples of ways to reduce healthcare costs in retirement?
Yes. Shopping carefully for Medicare Advantage or Medigap plans each year, using generic medications when possible, keeping up with preventive care, and comparing pharmacies can all help. Some retirees also use health savings account (HSA) funds from their working years to pay Medicare premiums and out-of-pocket costs tax-free.

Q: What is an example of a big one-time healthcare expense a retiree might face?
A major surgery with rehab, such as a hip or knee replacement, can trigger several thousand dollars in out-of-pocket costs in a single year. Another example is moving into assisted living or a nursing home, which can jump your monthly expenses by several thousand dollars almost overnight.

Q: Do all retirees face the same healthcare costs?
No. Your personal examples of healthcare costs in retirement will depend on your health, where you live, what insurance you choose, and how long you live. Two retirees with the same income can have very different medical spending based on chronic conditions, lifestyle, and long-term care needs.

The big takeaway: your retirement budget template should treat healthcare as its own category with multiple moving parts—not a single guess. Using these real examples of examples of healthcare costs in retirement, you can start building a plan that fits your actual life, not just a tidy spreadsheet.