A recent study by Fidelity Investments suggests that a 65-year-old couple that retired this year would need an average of $240,000 to cover their medical expenses. To calculate the average, Fidelity assumed that the couple is covered by Medicare and does not have employer-provided health insurance. They also assumed that the male partner would have a life expectancy of 17 years after retirement, and the female partner would have a life expectancy of 20 years.

This $240,000 estimate is a significant 6.7% increase from last year’s prediction. Of the medical expenses incurred, Fidelity estimates that:

• 41% will be for Medicare copayments, coinsurance deductibles, and excluded benefits

• 30% will be for out-of-pocket prescription drug expenses (not covered by Medicare drug benefit)

• 29% will be for Medicare Part B premiums and the Medicare prescription drug benefit

The medical expense projection is quite alarming, especially when you consider this subsequent study: According to the 2009 Retirement Confidence Survey (done by the Employee Benefit Research Institute), only 25% of retirees say they are very confident that they have saved enough money to cover their medical expenses during retirement. And only 13% of current workers felt that they would be able to save enough money by the time they retire to pay for medical expenses.

The unsteady economy, inflation, and rising cost of living were cited as the main reasons for the financial doubt. In fact, many workers said they expected to either delay their retirement, or look for additional work after they retire from their current job.

• 28% of workers surveyed say that the age at which they expect to retire has changed over the past year

• 72% of workers plan to continue working after retirement

So, how much money has the average American worker saved? According to the survey, the following statistics show modest savings among all age groups.

Ages 25-34

• Less than $10,000 – 53%
• $10,000 – $24,999 – 20%
• $25,000 – $49,999 – 12%
• $50,000 – $99,999 – 9%
• $100,000 – $249,999 – 5%
• $250,000 or more – 2%

Ages 35-44

• Less than $10,000 – 37%
• $10,000 – $24,999 – 16%
• $25,000 – $49,999 – 8%
• $50,000 – $99,999 – 14%
• $100,000 – $249,999 – 16%
• $250,000 or more – 9%

Ages 45-54

• Less than $10,000 – 36%
• $10,000 – $24,999 – 7%
• $25,000 – $49,999 – 11%
• $50,000 – $99,999 – 14%
• $100,000 – $249,999 – 15%
• $250,000 or more – 17%

Ages 55+

• Less than $10,000 – 30%
• $10,000 – $24,999 – 6%
• $25,000 – $49,999 – 13%
• $50,000 – $99,999 – 10%
• $100,000 – $249,999 – 15%
• $250,000 or more – 26%

Source: Employee Research Institute, Mathew Greenwald & Associates, Inc., 2009 Retirement Confidence Survey

The statistics point towards a potentially threatening outcome. The economy and the increasing medical expenses are making in nearly impossible for workers to save enough money for retirement. Yet, health care facilities cannot refuse care to patients simply because they can’t pay. With the “baby-boomer” generation getting set to retire, we can only wonder whether our ” health care reform ” will arrive soon enough.