Fidelity: Retirement health care tops $240K per couple

A 65-year-old couple retiring in 2009 will need about $240,000 — up from $225,000 in 2008 — to cover medical expenses in retirement even with Medicare insurance coverage, according to Boston-based Fidelity Investments’ latest health care cost estimate.

Fidelity has been releasing an annual retiree health care cost estimate since 2002. Over the past seven years, the amount needed for retiree health care costs has jumped $80,000, or 50 percent, from $160,000 in 2002.

As in years past, the Fidelity 2009 retiree health care cost estimate assumes individuals do not have employer-provided retiree health care coverage, but do qualify for Medicare, the federal government’s insurance program. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.

Fidelity wrote in its report that the increase in the retiree health care cost estimate from 2008 to 2009 can be attributed to a number of factors, including higher costs for doctor visits and diagnostic tests, increased expenses associated with new technology and general price inflation.