A recent Oath Money & Meaning Institute survey revealed that healthcare costs rank as retirees' top financial worry, with 81% of survey participants naming it as one of their top three concerns. And it's no surprise, given that Fidelity Investments now says that a 65-year-old retiring in 2026 can expect to spend an average of $185,500 on healthcare and medical expenses throughout retirement.

No matter how you look at it, $185,000 is a staggering figure, particularly at a time when the cost of living makes it difficult for millions to imagine retiring. While there's little you can do to control the overall cost of healthcare in retirement, there are steps you can take to plan for it.

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$200,000 goal

Earmarking $200,000 for healthcare expenses gives you a buffer above the $185,500 projection to account for inflation, gaps in Medicare coverage, unexpected health events, and the cost of services Medicare doesn't cover -- such as vision or hearing care.

As you attempt to decide how much money you need to retire, the thought of saving for yet one more thing may seem overwhelming. However, imagine moving into retirement without worrying about how your medical expenses will be paid. And keep in mind that the $185,000 figure includes many of your healthcare expenses -- from monthly Medicare premiums to prescriptions, deductibles, and other out-of-pocket costs.

If you're not quite sure how you can make it work, these 3 ideas can help get you started.

1. Maximize health savings accounts (HSAs): If you currently have a high-deductible health plan and are eligible for an HSA, contribute as much as possible while you're still working. HSAs offer three distinct tax advantages. Contributions are made pretax, you enjoy tax-free investment growth, and withdrawals for qualified medical expenses are also tax-free. Plus, balances roll over year to year, meaning you can take the entire account with you into retirement.
2. Create a separate "bucket": Set the money earmarked for medical expenses apart from other retirement savings accounts, as well as from everyday living and discretionary spending. Your best bet may be to open a new account dedicated solely to healthcare costs to ensure funds are never redirected to another purpose.
3. Increase retirement plan contributions: Boost contributions to employer retirement plans and individual retirement accounts (IRAs). Depending on your savings rate and returns, investing these funds for growth over 10 years or more can reasonably accumulate an additional $200,000 by the time you're ready to retire.

It's not an all-or-nothing proposition

If you're too close to retirement age to realistically hit the goal of $200,000, don't be discouraged. Let's say that between ages 55 and 65, you're able to invest $300 per month in an account that earns an average annual return of 7%. That investment would leave you with nearly $50,000 to use for healthcare expenses.

An extra $50,000 could be enough to pay your Medicare premiums for decades or meet your deductibles for years. Even if you don't hit the target, hitting a target can only make life easier in retirement.