Retiring? Better have at least $225,000

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A couple retiring this year will need about $225,000 in savings just to cover medical costs in retirement, according to analysis by Fidelity Investments.

The figure, calculated for a couple age 65, is up 4.7 percent from the $215,000 estimate for 2007, the financial services company said.

And it is similar to other projections for health care costs in retirement – daunting figures given that longer life spans also are requiring workers to increase retirement nest eggs.

A separate study released last month by the Center for Retirement Research at Boston College estimated that an individual needs to go into retirement with some $102,000 earmarked just for health care coverage, while a couple needs about $206,000.

Given current levels of retirement savings, the center said, six in 10 older workers are “at risk” of being unable to maintain their standard of living in retirement.

One Response to Retiring? Better have at least $225,000

  1. There isn’t enough information here. Does the cost include long term care? Does it assume this is someone without a medicare supplement or medicare part D?
    It is a cause for concern, but it may not be a reason to panic. Certainly it is something people should look at and seek proffessional advice if necessary.

    March 5, 2008 at 11:43 am