Login Register Subscribe
Current Issue

Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Retired couple needs 11% more for medical expenses

Reprints

A 65-year-old couple who retires this year without employer-provided health insurance will need about $245,000 to pay future medical-related expenses, Fidelity Investments said Wednesday.

That's up more than 11% from last year, with the increase being driven by longer life expectancies and increases in medical and prescription drug expenses, according to an analysis by Boston-based Fidelity.

“The sticker shock of $245,000 hopefully reinforces for many people that they need to act now, regardless of their age,” Brad Kimler, executive vice president of Fidelity's benefits consulting services, said in a statement.

Of the $245,000 needed to cover a retired couple's health care expenses, Fidelity estimates that 43% will be needed for expenses not covered by Medicare, 34% will go toward paying Medicare Part B and Part D premiums, and 23% will be spent on out-of-pocket prescription drug expenses.