Medical costs can make up a chunk of retirement expenses - but where a retiree chooses to live can have a significant impact on that spending.
Most adults 65 or older will rely on the government’s Medicare program for health insurance when they retire. On average, a retiree would need up to $428,000 saved to cover Medicare premiums, deductibles and prescription drugs in their golden years, according to a 2025 study from nonpartisan benefits and public policy research firm Employee Benefit Research Institute. Yet, the average retiree has just under $290,000 saved for retirement.
