Are you ready for some statistics? Baby Boomers listen up. Looking back to 2004, the average annual expenditures on health care for people ages 45-54 was $2,695, for those ages 55-64, they spent $3,262 annually and those over 65, spent over $3,899 annually. (Source: Bureau of Labor Statistics at http://www.bls.gov/cex/2004/Standard/age.pdf). While these numbers are from 2004, I found another study from 2006 that shows health care costs exceeding $20,000 annually after age 75. Mind boggling! I need to take a look in more detail at that study but one thing is for sure, when budgeting for future medical expenses expect an increase in overall health care costs and plan accordingly. Your health will ultimately affect your retirement activities and financial goals, so start now to develop and implement changes to have a healthy life style leading into retirement.