5 Ways to Reduce Retiree Health Costs

The out-of-pocket costs for a couple in retirement look daunting, but our strategies can ease the pain.

I saw the report that 65-year-old couples will need more than $200,000 for health care costs during retirement. Why is the amount so steep, and what can I do to lower these costs?

Fidelity’s annual retiree health care cost estimate found that couples retiring this year at age 65 will need $220,000 for health care costs during retirement (the same figure as last year’s study). The cost assumes the couple has traditional Medicare and pays deductibles and coinsurance for Part A and Part B (plus the premiums for Part B, which are currently $104.90 per month for most people). It also includes Part D prescription-drug coverage premiums and out-of-pocket costs. It does not include long-term-care costs.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.