Medical costs for U.S. retirees fell in 2010: institute

According to a report released on Tuesday by the Employee Benefit Research Institute, a 65-year-old woman retiring this year will need to have between $143,000 and $242,000 to cover their health insurance premiums and out-of-pocket expenses in retirement.

Due to a shorter life expectancy, a 65-year-old man retiring this year would need between $124,000 and $211,000.

By saving these amounts, retirees would have a 90 percent chance of being to cover their health expenses, said EBRI, a Washington DC-based nonprofit research institute.

Some costs have fallen from 2009 thanks to changes to Medicare prescription drug costs under health care legislation passed by the U.S. Congress earlier this year.

Last year, EBRI estimated a 65-year-old woman needed between $164,000 and $450,000 to cover lifetime medical expenses, while her male counterpart needed between $134,000 and $378,000.