According to Fidelity, a couple retiring in 2014 should have set aside $220,000 dollars to supplement Medicare benefits in their retirement. Fidelity states that most retirees overestimate the actual amount of their health care costs that are covered by Medicare.
Fidelity explains that Medicare only covers 51% of the cost of medical expenses. The retirement age is between 65 and 70, depending on what year the retiree was born, and with an average life expectancy of 83 years, it is necessary to plan ahead. Private insurance policies and Medicare don't typically cover the expense of long-term care facilities or live-in nursing staff.
A retiree also needs to make sure his investments grow with inflation or he will find his investment diminishing in value each year. Millitary.com suggest that retirees place a portion of their retirement investments in stocks and guaranteed-savings annuities to help stretch out their funds.