Medical costs for retirees continue to rise, study says - Los Angeles Times

A couple retiring this year needs $240,000 to cover healthcare expenses, the Fidelity analysis says. That's a 6.7% increase over last year.

Associated Press

March 27, 2009

A couple retiring this year needs about a quarter of a million dollars to cover medical expenses, a new study reports.
The $240,000 estimate is a 6.7% increase from last year's, and the cost is expected to keep rising. The Fidelity Investments study is based on projections for a 65-year-old couple retiring this year with Medicare insurance coverage. It assumes no employer-provided insurance and a life expectancy of 17 years for the man and 20 years for the woman.

The study also factors in Medicare deductibles, co-payments and certain services that may not be covered.
In seven years of Fidelity's annual study, projected medical expenses have increased 50%.
When you retire, healthcare is likely to be your largest expense, and it's one that many people forget to factor fully into their retirement plans, said Sunit Patel, a senior vice president at Boston-based Fidelity.

"A lot of individuals feel today that Medicare covers a vast majority of costs," he said. "We know that's not true. It's better not to be blind about that."
In fact, Medicare pays about half of the healthcare costs for current retirees, and even that is in jeopardy.....

Medical costs for retirees continue to rise, study says - Los Angeles Times

Technorati Tags: Medicare,Retirement,Retirees,Health care costs