Are you factoring in health care costs into your retirement strategy?

According to the latest retiree health care cost estimate from Fidelity Benefits Consulting, a 65-year-old couple retiring this year will need an average of $260,0001 (in today’s dollars) to cover medical expenses throughout retirement, up from $245,000 in 2015.

And that applies only to retirees with traditional Medicare insurance coverage, and does not include costs associated with nursing home care. Fidelity estimates that a 65-year-old couple would need an additional $130,000 to insure against long-term care expenses.