How Rising Health Care Costs Are Wrecking Retirement Savings

American employees are feeling more stressed about their finances, in large measure because of the increasing out-of-pocket cost of healthcare, new research indicates. They are looking to employers for guidance—and to do something about it.

Six in ten workers experience stress managing their finances, up from five in 10 workers 2 years ago, in accordance to the Bank of America Merrill Lynch Workplace Benefits Report. The bank polls workers with 401(k) plans at companies of all sizes every other year. In the new poll, two-thirds claimed they are thinking more about retirement issues than in the past; more than half said they require help getting it right.

Much of their angst flows from health care planning. Seven in 10 employees report their medical costs have gone up the past 2 years, and the vast majority claims the extra expenses are important enough to force them to save less for retirement. Driving costs up are things like higher deductibles and co-pays, which have risen as employers and insurers, as well as the government, seek to have more individuals covered and paying part of the charges.