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March 05, 2008 at 09:09 AM
A 65-year-old couple retiring in 2008 will need around $225,000 to cover medical costs in retirement, according to a new study.
Fidelity Investments, Boston, which conducted the study, notes that its total retirement health care cost estimate increased by 4.7% over its 2007 estimate of $215,000.
Since Fidelity first calculated the cost in 2002, the figure has risen a total of 41%, or an annual average of 5.8%.
The estimate assumes individuals do not have employer-sponsored retiree health coverage. It includes expenses associated with Medicare Part B and D premiums (30%), Medicare cost-sharing provisions (39%) and prescription drug out-of-pocket costs (31%). It does not include such other health-related expenses as over-the-counter medications, most dental services and long term care.
