{"id":163121,"date":"2025-08-21T06:35:12","date_gmt":"2025-08-21T06:35:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/163121\/"},"modified":"2025-08-21T06:35:12","modified_gmt":"2025-08-21T06:35:12","slug":"the-one-thing-that-makes-a-middle-class-retirement-10-times-more-expensive-according-to-experts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/163121\/","title":{"rendered":"The One Thing That Makes a Middle-Class Retirement 10 Times More Expensive, According to Experts"},"content":{"rendered":"\n

For Americans still in the workforce with employer-sponsored healthcare plans, it\u2019s easy to take health insurance for granted. Unfortunately, this means that many middle-class workers fail to factor in health care costs when planning for their retirement<\/a>. This oversight can have serious financial ramifications in their golden years.<\/p>\n<\/p>\n

According to Fidelity\u2019s 2025 Retiree Health Care Cost Estimate<\/a>, a 65-year-old retiring in 2025 can expect to spend an average of $172,500 throughout retirement on health care and medical expenses \u2014 and that\u2019s excluding long-term care expenses. The same survey indicates that 20% of Americans never considered their healthcare needs during retirement.<\/p>\n

Be Aware: The New Retirement Problem Boomers Are Facing<\/a><\/strong><\/p>\n

Read Next: 7 Luxury SUVs That Will Become Affordable in 2025<\/a><\/strong><\/p>\n

Peter Dunn<\/a>, CEO of Your Money Line and author and host of the \u201cPete the Planner Show\u201d podcast and radio show, said workers are often blindsided by the cost of medical coverage because their take-home pay arrives after medical expenses are deducted.<\/p>\n

\u201cWorkers are used to having a lot covered that just isn\u2019t with Medicare,\u201d he said, noting that retirees often fail to anticipate the costs Medicare premiums \u2014 the price of which can vary depending on their income \u2013or the fact that dental, vision, hearing and prescription drug costs aren\u2019t fully covered by most Medicare plans.<\/p>\n

\u201cMiddle-class couples could easily spend $6,000 [to] $10,000 a year out of pocket,\u201d he added.<\/p>\n

That said, there are some ways pre-retirees can plan for and mitigate the impact of healthcare costs in retirement<\/a>.<\/p>\n

It may sound obvious, but the single best way to control retirement costs is to stay healthy, said Dunn.<\/p>\n

\u201cIf your retirement is consumed with medical expenses, it will be absolutely miserable,\u201d he added. \u201cDon\u2019t smoke, keep your weight under control, walk 10,000 steps a day. Those choices matter more than you realize.\u201d<\/p>\n

Even small improvements in fitness can reduce the risk of costly chronic illnesses<\/a> like heart disease and diabetes.<\/p>\n

Check Out: 4 Retirement Expenses Boomers Didn\u2019t Plan for \u2014 but Should Have<\/a><\/strong><\/p>\n

\u201cMiddle-class retirement is very different today than it was 30 to 40 years ago,\u201d Dunn said, noting that the demise of company pensions and the fact that people are buying homes later in life means many workers retire without a guaranteed income, and with the added burden of mortgage payments.<\/p>\n

Entering retirement with a mortgage<\/a> can put a huge strain on fixed income, especially when paired with rising healthcare costs.<\/p>\n

Story Continues <\/p>\n

\u201cIf you think your biggest expense is your mortgage, eliminating that before retirement can reduce your monthly expenses by as much as 30%,\u201d the expert noted.<\/p>\n

Many middle-class parents feel pressure to cover their children\u2019s higher education. But Dunn cautions against taking on student debt late in life.<\/p>\n

\u201cI don\u2019t think a parent in the middle class should martyr the rest of their financial life to improve someone\u2019s financial life who\u2019s just starting their career,\u201d he explained.<\/p>\n

Trade schools or more affordable college options may make more sense depending on the student\u2019s trajectory.<\/p>\n

For those with high-deductible health plans, an health savings account (HSA) can act like a \u201chealthcare 401(k) [plan],\u201d said Dunn. Contributions are tax-free, the money grows tax-free and withdrawals for qualified medical expenses are also tax-free.<\/p>\n

\u201cIf you\u2019re eligible, it\u2019s an amazing strategy,\u201d Dunn said. Still, he advises prioritizing retirement accounts first: \u201cInvest in your 401(k)<\/a> before your HSA. But if you\u2019re maxing out your 401(k), an HSA should be your next stop.\u201d<\/p>\n

Retirement planning looks different for the middle class than for wealthier households. Most Americans won\u2019t retire because they\u2019ve saved a fortune, but because they\u2019ve managed to lower their expenses.<\/p>\n

\u201cThe middle class can\u2019t always save more money,\u201d Dunn said. \u201cThey have to reduce their cost of living. That\u2019s what gives them a shot at a comfortable retirement.\u201d<\/p>\n

More From GOBankingRates<\/strong><\/p>\n

This article originally appeared on GOBankingRates.com<\/a>: The One Thing That Makes a Middle-Class Retirement 10 Times More Expensive, According to Experts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"For Americans still in the workforce with employer-sponsored healthcare plans, it\u2019s easy to take health insurance for granted.…\n","protected":false},"author":3,"featured_media":163122,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,94289,3270,39391,94287,255,94288,700,708,67,132,68],"class_list":{"0":"post-163121","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-financial-ramifications","10":"tag-health-care-costs","11":"tag-healthcare-costs","12":"tag-medical-expenses","13":"tag-personal-finance","14":"tag-peter-dunn","15":"tag-retirement","16":"tag-retirement-planning","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115065370889755711","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/163121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=163121"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/163121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/163122"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=163121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=163121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=163121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}