Analysts discover one in five baby boomers cut back on healthcare

Kevin Magna

January 13, 2012

As Americans grow older, they look to cut costs to prepare for retirementIn an effort to save money, more than 20 percent of Americans over the age of 50 are cutting back on their healthcare costs, according to new findings from the Employee Benefit Research Institute.

Researchers found that as individuals get closer to retirement, they tend to spend less in order to enjoy their income. However, analysts note that these spending cuts include the needs of healthcare.

"We know that consumption tends to fall with age, but it's difficult to measure whether falling consumption is voluntary," said Sudipto Banerjee of EBRI, author of the study. "However, we found evidence that a significant segment of the older population may be making spending adjustments to their health care in order to save money."

While these individuals may feel as though they do not need as much healthcare, it's important that they reevaluate their decision. As they grow older, 50-somethings will require more medical attention, including medical alert systems. This way, should something unexpected happen in the home, medical personnel will be alerted and head to the scene.