Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDrew WoodSat, July 4, 2026 at 5:50 PM GMT+2 5 min readQuick ReadMedicare's total annual cost reaches roughly $5,000 per person when combining Part B, Part D, and Medigap. Part B alone jumped 10% in 2026 while Social Security's COLA was just 2.8%.Covering that $5,000 bill forever requires roughly $143,000 at a 3.5% yield or $100,000 at 5%, using dividend payers like O or JNJ.A 3.5%-yield dividend grower compounding at 7% annually turns a $5,000 income stream into $19,300 over 20 years, while a flat 10%-yield portfolio still pays just $5,000.Many financial professionals are salespeople paid on what they push, not whether you end up wealthier. A fiduciary is the opposite. The SEC legally requires them to put your interests first. Advisor.com's free matching tool pairs you with vetted fiduciaries from major national firms, all in under three minutes. See who you match with today.Medicare is not free, and the bill arrives every month for the rest of your life. The standard Part B premium in 2026 is $202.90 per month, which works out to roughly $2,435 a year per enrollee. Add Part D, a Medigap policy, and the occasional out-of-pocket charge, and most retirees end up writing checks closer to $5,000 a year per person for healthcare coverage they already "earned."Lucigerma / Shutterstock.comHow much capital, parked in income-producing investments, would cover that bill forever without touching principal?The bill that never retiresRetirees pay off mortgages. They sell the second car. Commuting costs vanish. Medicare premiums do not. They are deducted directly from Social Security, they rise almost every year, and they continue until death. The 2026 Part B premium jumped $17.90 from $185.00 in 2025, a roughly 10% increase in a single year, while the 2026 Social Security COLA came in at 2.8%. Healthcare inflation eats COLA for breakfast.The math at three yield levelsUsing a $5,000 annual target (Part B plus Part D plus a modest Medigap plan), here is what the principal looks like:Are You Ready To Retire, Or Years Behind?Most Americans suspect they're behind on retirement and never find out.