It's Thanksgiving weekend, but it's tough not to feel glum when the economic squeeze keeps getting tighter. Median household income was lower in 2012 than it was in 2007 on an inflation-adjusted basis, raises are a distant memory for many, and yet the cost of health insurance continues to increase.

New research shows employees are coping in a way that can have catastrophic consequences for the future.

Employees are planning to put away less money in their 401(k) accounts next year, according to Mercer, the benefit consulting firm, which surveyed 1,506 retirement plan participants earlier this year.

And the employees who are planning to cut back the most in their 401(k) savings? Surprisingly, and alarmingly, it's the employees closest to retirement.

Reduced contribution

Workers over age 50 are planning to reduce the contributions to their 401(k) accounts by 18 percent next year, according to the survey, which used a representative sample of retirement plan participants who also receive health benefits at work. The survey's margin of error is plus or minus 2.4 percent.

In June, employees over age 50 reported that they plan to contribute an average of $6,708 toward their 401(k) accounts during the following 12 months, compared with $8,242 the previous year, according to Mercer.

For those younger than 50, their contribution will be $7,608, compared with $7,877 the previous year, according to the study.

Many employees see the economy improving on a macro level, but they're not seeing the improvement personally, said Patricia McKelvey, the U.S. leader of Mercer's defined contribution administration business.

Wages are stagnant and prices are going up, especially health insurance, McKelvey said. Mercer reported recently that employers expect the per-employee cost of health coverage to increase 5.2 percent next year.

Faced with rising expenses, employees are cutting where they can, and for many, it's their 401(k) contributions.

Many people are seeing anywhere from a 10 percent to 50 percent jump in the cost of their health insurance, including premiums and higher deductibles, said Don Atherton, managing director of Bashaw & Atherton, an employee benefits and financial planning consulting firm in Houston.

"When you see that $200 to $300 to $400 increase a month that you haven't budgeted for, it has to come from somewhere," Atherton said.

One place to reduce is your personal savings rate, he added.

A matter of priorities

It comes down to priorities, and for most folks, it's having health insurance, he said. They figure they can work out their retirement plan later.

For many, that means delaying retirement. But the Mercer survey respondents also identified a growing concern that was barely on the radar screen a few years ago: How are they going to pay for their health care in retirement?

It's now the biggest financial concern among those 50 and older.

So at the time when workers are worried about scraping together enough money to pay for premiums and out-of-pocket health care expenses during retirement, they're also planning to cut back on their savings rate.

It seems like they're doing the opposite of what you'd expect, McKelvey said. If you want to cover your costs, you should be making appropriate investments now.

Some employees with high-deductible health care plans may be putting aside some of their retirement funds toward their health savings accounts, said Marshall Cobb, financial adviser with Captrust Financial Advisors in Houston.

Health savings accounts can be invested and used for future health expenses, including in retirement.

With so many companies shifting toward high-deductible plans to save money, the tax-advantaged savings accounts have become a way to fund retirement medical care which, according to some estimates, will run into the six figures, said Cobb, who consults with companies about their retirement plans.

Employers take notice

The reduction in retirement savings is setting off alarm bells in the employer community, which has sought to boost savings through automatic 401(k) enrollment programs and retirement counseling.

McKelvey recommended employers talk up the tax advantages of investing in 401(k) accounts and demonstrate how savings can grow over time.