A hypothetical couple retiring in 2024 will need to save approximately $7,000 more than last year to cover health care expenses during the remainder of their life if they have Original Medicare plus Medigap and Part D coverage, and $8,000 less if they have Medicare Advantage plus Part D coverage, according to Milliman's latest Retiree Health Cost Index.

A healthy 65-year-old man retiring this year can expect to spend up to $281,000 on health care expenses during the remainder of his life, requiring $188,000 in savings generating an investment return of 3% per year. A woman retiring this year can expect to spend $320,000, requiring savings of $207,000. Those estimates are based on a retiree with Original Medicare plus Medigap and Part D. 

For those with Medicare Advantage plus Part D, a man would expect to pay $128,000 and require savings of $86,000 while a woman would expect to pay $147,000 and require savings of $96,000. Milliman cautioned that actual expenses may vary substantially from estimates and will depend on factors such as where the retiree lives and the benefit plan they choose.