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Fidelity: Retiree health cost estimate falls, for a change

A Fidelity Investments report notes that retiring couples this year will need $230,000 for medical expenses -- a drop from the $250,000 originally predicted by the Boston-based advisory firm.

By Mark Jewell | Updated on March 31, 2011

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.

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