Baby Boomers Are Worried About Healthcare Costs -- So Why Aren't More Doing Something About It?

Though healthcare is a major burden for Americans of all ages, older adults are exceptionally concerned about it. In fact, in a new Allianz Life study, nearly one-third of baby boomers list rising healthcare costs as the greatest risk to their retirement in the coming year. But surprisingly, when asked about reducing that risk, only 7% were quick to identify health savings account (HSA) contributions as a means of mitigation.

If you're worried that an uptick in healthcare costs will wreck your retirement, and that milestone isn't so far off, it pays to take advantage of an HSA as long as you're still working. While having an HSA won't reduce your healthcare bills, it will give you a dedicated source of income to cover that whopping expense category.

The average healthy 65-year-old couple retiring this year is projected to spend an almost alarming $387,644 on healthcare costs throughout retirement (not including long-term care), reports software company HealthView Services. Reading between the lines, a couple that isn't particularly healthy can expect to lay out even more money for medical care. Even if you manage to enter your golden years with a decent amount of retirement savings, you may struggle to cover your costs during periods when healthcare issues eat up too much of your income for comfort.

Source Fool.com