BOSTON, MA-According to a study released by Fidelity Investments, a 65-year-old couple retiring in 2011 will need $230,000, on average, to cover medical expenses during retirement. The good news, according to the study, is that this figure is down from the $250,000 projection Fidelity made a year ago.

The total amount needed for retirees’ medical expenses had risen each year since Fidelity made its first calculation of $160,000 in 2002. Annual increases have averaged 6%. Fidelity attributes the reduced figure to President Barack Obama’s year-old health care overhaul, which will reduce many seniors’ out-of-pocket expenses for prescription drugs.

The projections are part of Fidelity's business helping employers design workplace benefits programs. The study is based on projections for a couple of 65-year-olds retiring this year with Medicare coverage. The estimate factors in the federal program's premiums, co-payments and deductibles, as well as out-of-pocket prescription costs. The study assumes no employer provided insurance in retirement, and a life expectancy of 85 for women and 82 for men.

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