Fears Over Retirement Healthcare Costs Are Rising — And Many Americans Aren’t Planning for Them

Only 48% have factored increasing healthcare costs into their retirement plans

PASADENA, Calif.--(BUSINESS WIRE)--D.A. Davidson today announced survey results revealing that nearly 8 in 10 (78%) Americans say they are concerned about the impact of rising healthcare costs on their retirement – yet fewer than half (48%) have factored these increasing costs into retirement planning. Further, only 16% say they feel very knowledgeable about expected healthcare costs in retirement.

According to the latest estimates from Fidelity Investments, healthcare expenses for an American couple retiring at age 65 in 2025 average $345,000, up nearly 41% from the $245,000 estimate in 2015.

“Healthcare is one of the most significant, and yet still underestimated, expenses that most retirees will face,” said Andrew Crowell, Financial Advisor and Vice Chairman of Wealth Management at D.A. Davidson. “Healthcare inflation typically runs at least twice the rate of overall inflation, yet many people experience denial over the fact that this could impact their retirement strategy one day.”

If healthcare costs result in being higher than expected in retirement, over one-third of Americans (37%) say they’d have to cut back on everyday spending, and 34% would reduce travel or leisure.

And they’re not alone. Six in 10 Americans (60%) say they’ve already witnessed someone in their life struggle with healthcare costs in retirement.

“Unexpected medical expenses can derail even well-structured retirement strategies, but the good news is that proactive planning can help pre- and current retirees better protect their financial security,” Crowell said.

A Closer Look at Health Savings Accounts (HSAs)

One savings tool available for healthcare costs is an HSA, a tax-advantaged savings account that allows individuals with high-deductible health insurance plans to set aside money for qualified expenses. Some of the money in an HSA can be invested and compound tax-free over time.

21% of Americans have an HSA. And just 40% of those HSA owners say they are using theirs for long-term savings for healthcare costs.

The strategies Americans plan to utilize to pay for healthcare costs in retirement include:

Medicare Advantage or supplemental Medicare plans	47%
Retirement accounts (401k, IRA, Roth IRA)	35%
Personal savings outside of retirement accounts	34%
Long-term care insurance	17%
HSA	13%
None of the above	17%

“HSAs are one of the most powerful tools we have available for retirement planning. Their triple tax advantage makes them an effective planning tool for covering healthcare costs in retirement. For individuals who are eligible, consistently funding and strategically investing an HSA can greatly reduce the burden of healthcare costs in retirement,” Crowell said.

Tackling the Knowledge Gap

Despite widespread concerns over healthcare costs in retirement, only 23% of Americans have ever discussed the topic with a financial advisor.

In fact, Americans are just as likely to get retirement healthcare guidance from friends and family as they are from government and Medicare resources (both 20%). Additionally, nearly one-quarter (23%) say they primarily get their healthcare cost planning information from online or print articles, or social media.

“Being prepared for rising healthcare costs is important, but being informed is the first, most crucial step,” Crowell said. “Working with a financial advisor can help you understand and anticipate these costs more accurately so you can make informed decisions that protect your long-term financial security.”

Methodology

This survey was conducted online by Big Village. The survey was fielded on February 13-15, 2026, among a nationally representative sample of 1,006 U.S. adults 18 years of age and older.

About D.A. Davidson Companies

D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 with corporate headquarters in Great Falls, Montana, and regional headquarters in Denver, Greater Los Angeles, New York, Omaha and Seattle, the company has approximately 1,600 employees and offices in 31 states.

Subsidiaries include: D.A. Davidson & Co., a full-service investment firm providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; and D.A. Davidson Trust Company, a trust and wealth management company.