‘Listen up’: Suze Orman says Americans are miscalculating 1 critical retirement cost — are you? 5 ways to get ahead now

Financial guru Suze Orman warns that Americans may be miscalculating a critical retirement cost: the expenses they'll face after enrolling in Medicare. While Medicare covers much of the healthcare for seniors, it doesn't pay for everything, leaving retirees potentially responsible for substantial out-of-pocket costs.

Orman points out that many Americans are unaware that Medicare won't cover routine dental care, prescription glasses, hearing aids, or long-term care. She emphasizes that even if you haven't yet enrolled in Medicare, it's important to pay attention to these potential expenses and adjust your retirement plans accordingly.

According to Fidelity, a 65-year-old retiring in 2026 could need about $185,500 in after-tax savings to cover healthcare throughout their retirement. Out-of-pocket costs can include premiums, deductibles, coinsurance, and services not covered by Medicare.

Medicare Part A is generally free for eligible people, but there's a $1,736 deductible for each inpatient benefit period in 2026. Average hospital costs in the U.S. were $3,297 per day in 2024, and the risk of needing hospital care rises with age - 16.9% of Americans ages 65-74 had at least one hospital stay in 2019, compared to 26.1% for those 85 and older.

To prepare for these potential healthcare costs, Orman recommends considering additional coverage like Medigap policies to help cover out-of-pocket expenses. She also suggests building dedicated savings, understanding your Medicare options, and exploring post-retirement income opportunities to protect your retirement finances.