Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

The Six-Figure Reason to Stay Healthy

Don't Miss Out —
Follow us on:
An employee loads a machine at the Bureau of Engraving and Printing. Photograph by Andrew Harrer/Bloomberg
An employee loads a machine at the Bureau of Engraving and Printing. Photograph by Andrew Harrer/Bloomberg

There's a new six-figure reason to keep working out.

A 65-year-old couple in the U.S. retiring this year will need an estimated $220,000 to cover medical expenses, according to a report by Fidelity Investments . Mind you, that's not what you'll need to retire with a roof over your head, a few trips to Florida and the occasional dinner out. That's just what you'll need to pay Medicare premiums and other out-of-pocket costs for doctor bills and prescription drugs. Nursing-home charges not included.

Here's the good news: Fidelity's estimate declined 8 percent this year. In 2012, the firm figured the hypothetical aging duo would need $240,000. A primary driver behind the decrease in the estimate year-over-year were the lower rates of increase in Medicare spending, in part because of the economy, and the 2010 health-care overhaul law, said Sunit Patel, senior vice president in the firm's benefits consulting group. Fidelity looked at historical Medicare claims and life expectancy statistics to come up with its estimate.

The Boston-based mutual fund company has a business reason for tracking health care costs. It's been expanding its business in the administration of health savings accounts (HSAs). More employers are shifting workers into high-deductible health insurance plans paired with portable, tax-advantaged savings accounts to tap for medical expenses. Fidelity administered 182,000 accounts as of Dec. 31 compared with 119,000 at the end of 2011.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.