A 65-year-old couple retiring in 2007 will need $215,000 to cover medical costs, according to Fidelity Investments. This is a 7.5% increase from expenses in 2006. Since Fidelity began estimating these costs in 2002, they have risen an average of 6.1% a year. The figure doesn’t include over-the-counter medications, dental work or long-term care.
“A significant amount of retirees told us their state of health is not good, they are spending more in retirement than they ever planned, and some were even forced into an early retirement due to health problems,” said Brad Kimler, senior vice president at Fidelity Employer Services Co. “But if today’s workers act now to take advantage of the many retirement savings vehicles available to them, they can create a more secure and enjoyable retirement.”