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."