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A 65-year-old couple retiring this year will need
That’s down 8 percent from the
Fidelity attributes its optimism to
The projections are part of Fidelity’s business helping employers design workplace benefits programs. The study is based on projections for a couple of 65-year-olds retiring this year with
The calculation was complicated this year by the health care bill that Obama signed into law in
Fidelity says that’s the key reason why its projection is down this year. But that effect will run its course. Longer-term, retirees’ cost savings aren’t expected to offset other factors driving expenses up, such as new medical technologies, greater use of health care services, and more diagnostic tests.
That’s why Fidelity expects its calculation will eventually resume its historic pattern of annual increases.
“We expect that trend to continue when we look to 2012 and beyond,” said
Fidelity’s estimate is a projection of what an average couple would need. Actual costs will vary widely, depending on a couple’s medical needs and how long they live. The projection also doesn’t factor in most dental services, or long-term care, such as costs from living in a nursing home.
In any given year, about one in four
For 2011, the coverage gap starts after
Under the new law, the gap will be gradually eliminated by 2020. When the changes are complete, seniors will just pay the regular 25 percent cost sharing for all their medications.
In its latest annual estimate released in November, EBRI projected that a couple with median drug expenses _ meaning half of the population would have higher, and half lower _ would need
EBRI’s study didn’t closely examine the savings impact from the health care law because of differences in how it makes its projections compared with Fidelity.
Associated Press Writer