Whether people are just starting out in their careers or are nearing retirement, many aren't saving enough to cover their health care expenses, according to two Nationwide Retirement Institute surveys.

"Health care costs and related financial concerns are a common thread across multiple generations," says John Carter, president of Nationwide Retirement Plans and president and chief operating officer-elect of Nationwide Financial. "Although young and old agree they should be more proactive in addressing these concerns, they are missing easy opportunities to do so."

Edelman Intelligence conducted one of the surveys on behalf of the Nationwide Retirement Institute, polling 1,000 U.S. adults ages 25 through 45. The Harris Poll conducted the second survey, polling 1,462 U.S. adults ages 50 or older with investable assets of $50,000 or more who are retired or plan to retire in the next 10 years.

For younger adults, about three out of four are doing things to save money on medical-related expenses, but such actions come at a risk to their health, Carter says. These behaviors include delaying seeking medical help with the hopes the condition will subside (33 percent); considering not seeking care to avoid high deductibles (27 percent); skipping a scheduled appointment to avoid a medical bill (22 percent); taking less than the recommended dosage to extend the length of a prescription (22 percent); stop taking a prescription because it cost too much (21 percent); and not following a treatment plan recommended by doctor, such as a physical therapy plan. (20 percent).

Moreover, 20 percent of younger adults say health care expenses have had extreme impact on their well-being, causing them to skip getting care (48 percent), go into debt (38 percent), stop saving money for discretionary purchases (43 percent), kept them from getting needed medicine (33 percent), made it harder to contribute as much as they would like to a 401(k) retirement account (31 percent) or caused them to file for bankruptcy (13 percent).

"The financial barriers to affording health care can be overwhelming — however, many adults don't realize there are a number of ways to lessen the financial burden," Carter says. "In fact, there are tools, employer programs and resources that can help consumers prioritize their health, remove cost barriers and best provide insight into how to address concerns."

For older adults, the majority (69 percent) of respondents in the second survey say that one of their top fears in retirement is their health care costs going out of control. More than half (58 percent) say they are "terrified" of what health care costs may do to their retirement plans and 67 percent say what stresses them most is an unanticipated decline in health.

However, many still aren't saving enough to mitigate these concerns, as nearly half (46 percent) of those who are already retired say that in hindsight, they would save more in their retirement accounts if they could plan for retirement all over again.

Many older adults also aren't availing themselves of professional advice, according to the second survey. Only a third plan on discussing health care costs during retirement (33 percent) or long-term care costs (32 percent) with a financial advisor or consultant.

"Health and wealth are highly personal and complex topics, and it's easy to be overwhelmed when trying to prepare oneself for today and tomorrow," Carter says. "Working with an advisor and taking advantage of online tools in preparation for retirement, can help adults both young and old reach personal goals and achieve the retirement they envisioned."

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Saving for health care vexes young and old employees alike

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