Retirees at 65 face annual Medicare-related healthcare costs around $8,400, including Part B premiums, Medigap Plan G, Part D drug coverage, and out-of-pocket expenses. These costs are rising faster than general inflation, threatening retirement budgets. To manage expenses, enroll in Medigap Plan G during the guaranteed window, use HSA funds for premiums tax-free, and add dental/vision coverage. Avoid income spikes that trigger higher Medicare surcharges by careful tax planning.