The amount of money retirees will need to set aside to cover out-of-pocket health care expenses is projected to rise 4.7 percent this year compared with 2007, according to Fidelity Investments research released today. Fidelity calculates that a couple age 65 will need $225,000 to cover health expenses across their retirement years. That number has risen 41 percent since Fidelity started tracking it in 2002. The estimate assumes no employer-sponsored insurance supplementing Medicare, and includes Medicare Part B and D premium expenses. It excludes out-of-pocket expenses for over-the-counter medications, dental expenses and long-term care.

“With health care costs continuing to outpace wage increases and companies trimming retiree ealth benefits, financing health care has to be central to retirement planning,” said Brad Kimler, executive vice president, Fidelity Investments. “Given current economic conditions, this is especially true for those planning to retire in the next few years or before they qualify for full Social Security or Medicare benefits.”

This research comes on the heels of research released last month by the Center for Retirement Research at Boston College, which drew similar conclusions.

More to come on this topic shortly in the column.

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3. Health Savings Accounts have a limited role in funding retirement health, study says
4. Health care cost is a looming train wreck for retirement security
5. Health reform would cut Medicare prescription drug costs for many

Tags | health care, health insurance