New tab for retirement health care: $240,000

The cost of health care in retirement has risen 50% since 2002, according to research released today by Fidelity Investments.

A 65-year-old couple retiring this year will need about $240,000 to cover medical expenses in retirement apart from Medicare insurance, reflecting a 6.7% increase over the 2008 estimate of $225,000, according to the Boston-based firm,

The analysis assumes that the individuals do not have health care coverage provided by their employers, but they do quality for the federal Medicare insurance.

Twenty-nine percent of that total represents premiums associated with Medicare Parts B and D; 41% for the cost-sharing provisions of Medicare, including co-payments, co-insurance and deductibles; and 30% for prescription drug out-of-pocket expenses such as co-pays.

The estimate does not include other expenses such as over-the-counter medications, most dental services and long-term care.

It is based on the assumption that the men will live to age 83 and the women to 86.

“With employee-sponsored retiree health care coverage on the decline nationwide, it is imperative that today’s workers begin to set aside money themselves for medical expenses in retirement as part of their overall retirement strategy,” Brad Kimler, executive vice president of Fidelity’s Consulting Services business, said in a statement.