Health

Retiree health costs rising, Fidelity study shows

Posted on 05 March 2008

Mark Miller
Mark Miller
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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 Retirement health care costs - Fidelitynumber 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.

Related posts:

  1. Retirement health costs jumped 6.7 percent in 2008, Fidelity says
  2. A tax you need to plan for: retirement health care costs
  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

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  1. A tax you need to plan for: retirement health care costs | RetirementRevised Says:

    [...] a separate study by Fidelity Investments came up with a remarkably similar average figure-$225,000 in lifetime expenses for a couple aged 65 [...]

  2. Have you set aside $85,000 for long-term care yet? | RetirementRevised Says:

    [...] with out-of-pocket health care expenditures, the average 65-year-old couple will need to spend an additional $85,000 on premiums for long-term [...]

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