# The Retirement Spending That Sneaks Up After Age 75
Most retirees budget for Medicare premiums and copays once they hit 65. Then age 75 arrives, and the bill spikes.
Healthcare spending jumps significantly after 75. The average person aged 75 and older spends $8,000 to $10,000 annually on medical care, according to research from the Centers for Medicare and Medicaid Services. That's roughly double what someone aged 65 to 74 typically spends.
The culprits are predictable but often overlooked. Prescription drug costs increase as chronic conditions accumulate. Vision and hearing aids become necessities, not luxuries. Dental work mounts. But the biggest expense is long-term care. Nursing home stays, in-home aides, and assisted living facilities can cost $4,000 to $8,000 monthly, depending on location and level of care.
Medicare covers hospital stays and doctor visits but leaves significant gaps. It does not cover long-term custodial care. Medicaid eventually picks up these costs, but only after you've depleted most assets. The average American man lives to 78, women to 83. If you live into your 90s, long-term care expenses can wipe out decades of careful saving.
Start planning now. Run the numbers with a financial planner who specializes in retirement income. Ask about long-term care insurance premiums, which increase with age. A policy purchased at 60 costs far less than one bought at 75.
Review your Medicare coverage annually. Switch to a Medicare Advantage plan if it better covers your actual health needs. Don't ignore supplemental insurance (Medigap), which covers Medicare's deductibles and coinsurance.
Most importantly, set aside a dedicated healthcare bucket in your retirement portfolio