The $185,500 Expense That Could Upend Your Retirement Budget if You Don't Prepare

Saving extra for it ahead of time could help you avoid financial stress.

It's just as important to choose your Medicare coverage carefully and understand your plan's rules and benefits.

Many people spend years planning for retirement. And in the course of doing so, you might focus on things like when to sign up for Social Security , how much money to withdraw each year from your savings, and what your expenses might look like.

But in the course of figuring out your retirement finances, there's a big expense you risk underestimating -- healthcare . And if you don't know what you're in for, it could throw your budget for a serious loop.

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It's probably not a secret that healthcare can be costly in retirement. But the latest number might shock you.

A 65-year-old retiring in 2026 can expect to spend an average of $185,500 on healthcare and medical expenses throughout their senior years, according to Fidelity. That's up 7.5% from last year's estimate.

Of course, that figure won't apply to everyone. But it highlights a reality many retirees fail to understand ahead of time.