Mutual fund company Fidelity Investments is painting a troubling picture of escalating health care costs for retirees.

Boston-based Fidelity says a 65-year-old couple retiring this year will need about $240,000 to cover medical expenses, even with Medicare insurance coverage.

The company has calculated an annual retiree health care estimate since 2002. The latest estimate represents a 6.7 percent increase over last year’s projection of $225,000. The estimate assumes retirees do not have employer-provided retiree health care coverage, but do qualify for the federal government’s insurance program Medicare.

The estimate does not include expenses like over-the-counter medications, most dental services and long-term care. The increase in estimated costs is attributed to medical charges and inflation. (AP)