A 65-year-old couple planning to retire this year will need an estimated $260,000 to cover healthcare costs in retirement, up from 245,000 in 2015, according to a new study by Fidelity.
The estimate is based on traditional Medicare insurance coverage for retirees with average life expectancies of 85 years for men and 87 years for women. It aims to give a general idea of retirees' monthly expenses associated with Medicare premiums, co-payments and deductibles as well as prescription out-of-pocket costs.
The study attributes the six percent rise in medical spending to an uptick in utilization of services and rising drug costs.