Rising health care costs are eroding the financial security of American employees.
According to a new report from Bank of America Merrill Lynch released Monday, 79% of employees surveyed reported higher health care costs in 2016 — up from 69% in 2015 — and more than half said they were either spending less overall or contributing less to fund financial goals as a result.
Of that 56% that cut back, almost two-thirds said they were saving less for retirement, about 50% said they were reducing debt payments and almost 40% were investing less.
The supplemental report is based on an online survey of 1,242 employees conducted by Boston Research Technologies on behalf of Bank of America Merrill Lynch about a year ago for its 2017 Workplace Benefits Report. All respondents were participants in 401(k) plans, not necessarily involving Merrill, and the firm was not identified as the study’s sponsor.