Healthcare expenses consistently rank among the top retirement concerns for Americans across all generations. This worry is compounded by ongoing medical cost inflation, which continues to rise at approximately twice the rate of CPI. A key challenge in addressing this issue is developing personalized projections for retirement healthcare expenses based on the many factors that influence costs. Generic averages are insufficient for crafting a plan to accurately project (and ultimately fund) future healthcare needs.

Fortunately, actuarial data allows individuals to tailor projections within the broad range of potential cost outcomes. By accounting for factors such as health status, coverage, and state of residence, individuals can prepare for retirement healthcare expenses with greater confidence.

The purpose of this Data Report is to highlight legislative changes that affect retirement healthcare costs, establish an understanding of key coverage categories, examine the impact of healthcare cost inflation and other critical variables, and illustrate how these factors interact in a brief case study.