By WAYNE WILSON

A 65-year-old couple retiring in 2012 will spend approximately $240,000 on health care throughout their retirement, according to a report from Fidelity Investments. This doesnt even include over-the-counter medication, dental care and other add-ons.

Many of us have always received health care coverage through our employers, but as retirement looms near, the reality of choosing and paying for our own health care can become overwhelming. Planning ahead for this change can make all the difference.

Budgeting basics

The first step when budgeting for health care is to consider what youre currently paying through your employer. Use this number as a guide to budget for future payments and choose a plan. Look at what services you use and dont use, how often you use them and how much their cost factors into the total amount. Keep in mind that your trips to the doctor may become more frequent as you grow older. Also be sure to consider inflation when budgeting, which can be up to four times higher for health care. Experts assume annual increases of 6 to 8 percent.

For example, that same 65-year-old couple with annual household income of $75,000 can expect to pay about $10,500 for health care this year. With increases in health care costs and inflation, Fidelity predicts that number could rise to $25,000 in just 15 years.

Picking the right plan

As you plan for retirement, its important to remember that turning 65 makes you eligible for Medicare, which can cost significantly less than buying individual health care before Medicare kicks in.

There are several questions to consider when choosing a Medicare plan. Do you only need the most basic care option? Do you want prescription drug coverage? What works best for you Original Medicare with a Medigap plan or a Medicare Advantage plan?

First, lets look at your options:

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GUEST OPINION: Planning for health care after retirement: What you need to know