Retirement Healthcare Cost Calculator

This calculator helps estimate the healthcare costs you may face during retirement, including medical premiums, expected out-of-pocket spending, and optional long-term care (LTC) needs. It offers three methods: a health-inflation projection, a Medicare-focused estimate, and a comprehensive projection that includes LTC.

Inputs that represent rates must be entered as decimals (for example, enter 0.035 for 3.5%). Results include nominal totals over retirement years and an approximate present-value figure using your real return assumption to help with planning and budgeting.

Updated Nov 11, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record ecb02c96849e • Reviewed by Fidamen Standards Committee

Calculation method

Combines health-cost inflation projection with an expected long-term care (LTC) expense estimate, converts LTC total into an annualized burden, then projects totals and present-value need.

Inputs

Current age

Min 18 · Max 100

Planned retirement age

Min 50 · Max 100

Planned age to cover (life expectancy)

Min 60 · Max 120

Current annual health-related spending (premiums + out-of-pocket)

Min 0

Annual health-cost inflation (decimal, e.g. 0.035 = 3.5%)

Min 0 · Max 0.2

Expected annual out-of-pocket spending in retirement

Min 0

Estimated monthly Medicare-related premium (Part A/other combined)

Min 0

Estimated monthly Medicare Part B premium

Min 0

Estimated monthly Medicare Part D premium

Min 0

Estimated monthly long-term care cost (private-pay, facility or in-home)

Min 0

Probability you will require long-term care (decimal, e.g. 0.2 = 20%)

Min 0 · Max 1

Expected duration of LTC if needed (years)

Min 0 · Max 20

Real investment return after tax (decimal, used for present-value)

Min -0.1 · Max 0.2

Primary expected coverage in retirement

Results

Updates as you type

Combined annual cost at retirement

$14,354.29

Expected total LTC nominal cost

$36,000.00

Total projected nominal cost (health + LTC)

$330,148.60

Present-value required today

$172,302.08

Output	Value	Unit
Combined annual cost at retirement	$14,354.29	USD
Expected total LTC nominal cost	$36,000.00	USD
Total projected nominal cost (health + LTC)	$330,148.60	USD
Present-value required today	$172,302.08	USD

Primary result$14,354.29

Visualization

Points

Methodology

The tool uses deterministic arithmetic projections: it grows current annual health spending by an annual health-cost inflation rate to estimate a retirement-year annual cost, then multiplies by expected retirement years to obtain a nominal total.

For the Medicare-focused method, the calculator sums user-provided monthly premium estimates and annual out-of-pocket figures, then projects across retirement years.

The comprehensive method adds an expected long-term care burden by estimating an LTC total (monthly LTC cost × expected duration × probability of need), annualizing that total across retirement years, and combining it with medical cost projections. Present-value calculations discount future totals by a user-provided real return after tax.

Security, data handling, and testing practices follow established authoritative guidance: risk and controls align with cybersecurity and quality standards from NIST and ISO, engineering rigor references IEEE best practices for numerical reliability, and organizational safety and recordkeeping align with OSHA principles where relevant.

F.A.Q.

How accurate are these estimates?

Estimates are deterministic projections based on user inputs and simplified assumptions. They do not model stochastic health events, policy changes, or individual medical needs. Use results as planning guidance, not guarantees. For personalized advice, consult a licensed financial planner or benefits specialist.

Should I include long-term care?

Include LTC estimates if you want to reflect potential private-pay LTC costs in your planning. The tool uses a probability and duration to estimate expected LTC cost; adjust these inputs to reflect family history and personal health expectations.

Why are rate inputs decimals instead of percentages?

To keep expressions unambiguous, inflation and probability inputs are decimal numbers (for example, enter 0.035 for 3.5%). The UI labels clearly indicate this format.

Does this calculator account for Medicare eligibility rules or subsidies?

This tool uses user-provided premium and out-of-pocket inputs; it does not automatically determine Medicare eligibility, premium adjustments, or subsidy eligibility. For official eligibility and premium estimates, consult the relevant government resources or a benefits advisor.

What standards govern data handling and accuracy?

This product follows recognized guidance for engineering, security, and quality: NIST cybersecurity recommendations, ISO quality and information-security standards, IEEE numerical and software engineering practices, and organizational safety principles consistent with OSHA where applicable. Results include accuracy caveats and are not a substitute for professional advice.

Sources & citations

National Institute of Standards and Technology (NIST) — https://www.nist.gov
International Organization for Standardization (ISO) — https://www.iso.org
Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org
Occupational Safety and Health Administration (OSHA) — https://www.osha.gov
U.S. Medicare official site — https://www.medicare.gov
U.S. Health Insurance Marketplace — https://www.healthcare.gov
IRS Publication 590-B — Distributions from Individual Retirement Arrangements — https://www.irs.gov/publications/p590b
IRS Required Minimum Distribution Worksheets — https://www.irs.gov/retirement-plans/plan-participant-employee/required-minimum-distribution-worksheets
Social Security Administration — Retirement Benefits — https://www.ssa.gov/benefits/retirement/

Further resources

Related tools

External guidance

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: ecb02c96849e

What changed (latest)

v1.0.0 • 2025-11-11 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

Governance

Last updated: Nov 11, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
MINOR: New features or fields that do not change existing outputs for the same inputs.
PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

Verify formulas and unit definitions against primary standards or datasets.
Run golden-case regression suite and edge-case suite.
Record reviewer sign-off with credentials and scope.
Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

Uses exact unit definitions from the Fidamen conversion library.
Internal calculations use double precision; display rounding follows the unit's configured decimal places.
Not a substitute for calibrated instruments in regulated contexts.
Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-11 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 841dd80791f6