Here's Your Tab For Retirement Health Care
A 65-year-old couple retiring this year without employer-provided retiree health insurance will need about $215,000 to pay for future medical care-related expenses, according to an analysis by Fidelity Investments.
The amount, up from $200,000 last year, includes such expenses as Medicare premiums, copayments and deductibles. The ever-increasing tab for retiree health care expenses comes as the number of employers offering retiree health care coverage dwindles, making future retirees liable for a big chunk of their health care costs.Fidelity researchers estimate the $215,000 will be eaten up by three costs:
- Medicare Part B and D premiums, which account for 32 percent of the total
- Medicare co-payments, deductibles, co-insurance and other cost-sharing items, which account for 35 percent
- Prescription drugs, which account for 33 percent
Source: Fidelity Investments
Wise Owl