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Suze Orman warns retirees about Medicare gaps and rising out-of-pocket costs
The article cites Fidelity estimates that a 65-year-old retiring in 2026 may need about $185,500 in after-tax savings for health care in retirement.
For millions of Americans, reaching age 65 changes how health care is paid for through Medicare eligibility, but Yahoo Finance highlights Suze Orman’s warning that retirees may be miscalculating a major post-65 cost: Medicare does not cover everything.
The piece notes that even when Medicare covers a substantial portion of expenses, retirees can still face premiums, deductibles, coinsurance, and services that Medicare does not pay for. It points to commentary that health care spending is especially unpredictable because out-of-pocket costs, deductibles, prescription drugs, and the potential need for long-term care can add up.
The article also provides specific Medicare cost points for 2026, including a $1,736 deductible for each inpatient benefit period under Medicare Part A. It adds that KFF estimates the average cost of a day in a U.S. hospital was $3,297 in 2024.
Finally, it points to rising hospitalization risk with age, citing CDC data that in 2019, 16.9% of Americans ages 65 to 74 had at least one hospital stay, rising to 26.1% for those 85 and older. Yahoo Finance also says Fidelity estimates a 65-year-old retiring in 2026 could need about $185,500 in after-tax savings to cover health care expenses throughout retirement.