According to a recent study from Fidelity Investments, an average couple of 65-year-olds retiring in 2007 will need $215,00 to cover healthcare costs for the duration of their retirement. Fidelity re-calculates their estimate each year and the latest numbers suggest that retirees' healthcare costs have risen 7.5% in the last year and 34% since 2002. The increases suggest that America's seniors are spending an ever-increasing portion of their disposable income on healthcare, with costs rising at more than twice the rate of inflation.

Those projected costs include Medicare Part B and D premiums, which Fidelity suggests comprise 32% of the total estimate. Out-of-pocket expenditures for prescription drugs account for another 33%, while deductibles, co-payments, co-insurance and excluded benefits account for the remaining 38%.

The latest estimate assumes a retired couple does not have employer-sponsored healthcare coverage--and luxury few retirees now enjoy—nor does the estimate include other pricey health-related costs such as long-term-care needs, dental services and over-the-counter medications.

Source: Fidelity Investments

For a copy of the report, click here or visit fidelity.com.