USA Today recently reported that a study by Fidelty Investments estimates that people retiring in 2008 need to have about $225,000 set aside just to cover health costs during retirement. The study assumed an average retirement age of 60-62.

The new figures represent an increase of almost 5% over the numbers from 2007.

In further coverage, the Associated Press reported that the increase is a result of longer life spans and increased use of medical services, not simply an increase in the cost of those services.

A similar study done by Boston College's Center for Retirement Research showed that as many 60% of older workers are "at risk" of being unable to maintain their current standard of living after retirement because of health care costs.

The largest health expenses for retired patients are procedure co-payments and out of pocket drug costs.