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Retired couple needs 11% more for medical expenses

Posted On: Oct. 7, 2015 12:00 AM CST

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.