FIDELITY: RETIREES NEED $225,000 FOR HEALTH CAREFidelity Investments has released a report estimating that a 65-year-old couple retiring in 2008 would need approximately $225,000 to cover their medical costs in retirement, a 4.7 percent increase over the 2007 estimate of $215,000. Fidelity has been calculating retiree health care cost estimates annually since 2002. The number has risen a total of 41 percent since then, with an average annual increase of 5.8 percent. The 2008 estimate assumes that individuals do not have employer-sponsored health care coverage. The estimate includes expenses associated with Medicare Part B and D premiums, Medicare cost-sharing provisions such as co-payments and deductibles, and out-of-pocket costs for prescription drugs. It does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.
Fidelity recommended creating individual retirement plans, maximizing opportunities to save early through vehicles such as health savings accounts, assessing one’s current health to plan for future medical expenses, determining the details of employer-sponsored health coverage, and understanding the financial impact of health care costs on Social Security income.
VSCPA TO OFFER FINANCIAL ED
The Virginia Society of CPAs has partnered with James Madison University to launch LifeSkills — a seven-week program that trains college juniors and seniors in financial planning skills.
With a sponsorship from the VSCPA Educational Foundation, the VSCPA and JMU have developed an online toolkit to assist other colleges and universities in launching their own student financial education programs.
The tookit is a free online guide that walks institutions through the process of implementing the program and includes a complete timeline of tasks, a sample budget, topic ideas, frequently asked questions and program marketing materials. For more information, visit www.financialfitness.org.
TAC ELECTS 9 TO BOARD
Financial services educator The American College has elected nine members to its board of trustees: Ralph L. Crews, senior vice president of distribution at Penn Mutual Life Insurance Co.; Kevin C. Eichner, president and chief executive of Enterprise Financial Services Corp.; Peter A. Golato, a senior vice president at Nationwide Financial; Gary T. Huffman, president and CEO of Union Central Life Insurance Co.; Charles C. Jones, managing member of Pentrust LLC; Scott R. Perry, president of Bankers Life and Casualty Co.; David R. Rubinowitz, vice president of account development and training, sales, and distribution at John Hancock Insurance Co.; Margaret W. Skinner, an executive vice president at Guardian Life Insurance Co. of America; and Kevin Slawin, president of distribution and a senior vice president at Allstate Financial.
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