Are you delaying Retirement so your Adult Children can have medical coverage?

[Anonymous]

Interesting article. We all know our adult kids can stay on our medical plan til they are 26. Do you fell pressure to keep working longer so not to cut them off?

When reading article I just realized I am 63 with three adult kids on my plan, 18-25. The two oldest I guess can just pay to join their work plan. But my youngest is doing a major that requires a one year grad degress meaning she is not done with school till 2030. At some point I cant keep working forever.

Did any of you cut your adult kids from medical to retire? And if so since retired was that when you cut them off the cell phone plan too?

Parents are having kids later and later. But even having a kid at 39 which is not old at all for a Dad to have his last kid means that Dad has to work till 65 if he does not want to have kid cut off early from medcial. Tons of parents on my recent college visit were in their 60s. My kids roomate, her parents got married young and still are somewhat old. She is one of five and the youngest. He has kids 18-25 so he could have five adult kids on his medical plan!

https://www.marketwatch.com/story/will-you-delay-retirement-so-your-kids-can-have-health-insurance-until-theyre-26-5a085e96?mod=home_persfin

[Anonymous]

No but this is one reason I’m sticking it out as a fed for a few more years and keeping my FEHB. Once I retire my DH and I will get continued coverage and my kids can stay on it until age 26. I plan to retire at MRA at which point my oldest will be too old, but my younger 2 will get a few extra years.

And yes, I think it is a stupidly American thing to have to plan your career and retirement around being able to have health insurance.

[Anonymous]

A new “Parents & Finances” survey from Ameriprise Financial found that 45% are paying for the health insurance of their children over the age of 21. And it’s not just that: 84% are contributing to the purchase of a car, 73% are helping to pay for weddings, and 63% are helping with ongoing expenses like cellphones.

These adult children are expensive

[Anonymous]

America's growth and prosperousness depends on people working. Tying health insurance to job is one way to force more people to work. If you are ready to retire, I do not think providing health insurance to your very adult children should stop you. You can always subsidize their ACA plan if you feel an obligation to help.

[Anonymous]

Don't most colleges have a plan you can buy into for students? What about ACA? We will most definitely be retired when our youngest starts college.

[Anonymous]

I think it's more likely that parents peg their retirement to their kids' college years and the expense of tuition.

Most grad schools have health care plans available. It's reasonable for people age 22-26 who work full time to opt in to their employer plan (just as you do!). I mean - I think keeping my kids on my health insurance until 26 is a nice perk, but generally not one I'd make my own life decisions around unless my kid had substantial medical needs and no other path to insurability.

[Anonymous]

My youngest kid is 21.

My DH is 59. He is ready to retire.

[Anonymous]

OP however my older kids have jobs however, it is expensive out of their paycheck and "technically" free for me as I have to have the family plan was my wife and kid in college is on it anyhow. I have medical, dental and vision for five people on plan.

If I quit my two oldest would go on their work plan, my one in college I guess some type of bare bone college plan (but I would end up paying the policy plus who knows if she even would have dental or vision coverage).

It is like a crazy domino effect.

And I don't think it is crazy in US my insurance is tied to my job. I do think having kids ands spouses dependent on it and something they cant control is crazy.

[Anonymous]

Anonymous wrote:I think it's more likely that parents peg their retirement to their kids' college years and the expense of tuition.

Most grad schools have health care plans available. It's reasonable for people age 22-26 who work full time to opt in to their employer plan (just as you do!). I mean - I think keeping my kids on my health insurance until 26 is a nice perk, but generally not one I'd make my own life decisions around unless my kid had substantial medical needs and no other path to insurability.

I agree. Ironically one kid is a nurse in a hospital and they have expensive health insurance so she is on my plan .

[Anonymous]

Anonymous wrote:America's growth and prosperousness depends on people working. Tying health insurance to job is one way to force more people to work. If you are ready to retire, I do not think providing health insurance to your very adult children should stop you. You can always subsidize their ACA plan if you feel an obligation to help.

But for many their work plan is "cheap" relatively speaking.

Our work plan is $400/month for "family coverage". That includes 1-10+ kids if you have them. That is for medical/dental/vision and a $1250 ind/$2.5K family deductible. Trust me you won't find anything close to that on the ACA or at your kids college for that price.

So while it doesn't matter for us, it does for many people. The added cost would be $400-500+/month just for one kid for much worse coverage

[Anonymous]

Anonymous wrote:I think it's more likely that parents peg their retirement to their kids' college years and the expense of tuition.

Most grad schools have health care plans available. It's reasonable for people age 22-26 who work full time to opt in to their employer plan (just as you do!). I mean - I think keeping my kids on my health insurance until 26 is a nice perk, but generally not one I'd make my own life decisions around unless my kid had substantial medical needs and no other path to insurability.

I think most undergrads have health care plans, too. Wouldn't they have to for the international kids?

[Anonymous]

I adopted my daughter when I was in my late 40s so did keep working until I was 74 and kept her on until she was 26. Her current job doesn’t offer health insurance, so helped her find an affordable ACA plan. Worried about what the reduction in subsidies will do for that.

[Anonymous]

Anonymous wrote:A new “Parents & Finances” survey from Ameriprise Financial found that 45% are paying for the health insurance of their children over the age of 21. And it’s not just that: 84% are contributing to the purchase of a car, 73% are helping to pay for weddings, and 63% are helping with ongoing expenses like cellphones.

These adult children are expensive

Adult children can be expensive, but these expenses might be more understandable than they initially appear. T

The cell phone costs could simply reflect convenience and complancy with an existing family plans, where the marginal cost of keeping the kid on the plan costs very little.

For health insurance, a significant portion of that 45% likely covers adult children still in college, or parents may already have family plans where the marginal cost of keeping an adult child on is minimal.

For car purchases—I plan to get my kid a car at 16, but honestly, it's as much a gift to myself as to them—no more late-night drives to hockey practice.

Wedding expenses have been a parental tradition for generations, so that's not a surprise.

What would genuinely surprise me is if a large percentage of parents were covering rent or providing regular cash subsidies to adult children.

[Anonymous]

Anonymous wrote:OP however my older kids have jobs however, it is expensive out of their paycheck and "technically" free for me as I have to have the family plan was my wife and kid in college is on it anyhow. I have medical, dental and vision for five people on plan.

If I quit my two oldest would go on their work plan, my one in college I guess some type of bare bone college plan (but I would end up paying the policy plus who knows if she even would have dental or vision coverage).

It is like a crazy domino effect.

And I don't think it is crazy in US my insurance is tied to my job. I do think having kids ands spouses dependent on it and something they cant control is crazy.

Where do they work and where do you work?

My kid pays $0 for their health insurance for their job because premiums are like nothing for single 20 somethings in good health. Assuming he stays with the company, I think he will have to pay something when he moves to a family plan.

I mean, what are your older kids going to do when they hit 27? You might as well cut the chord now and get them used to budgeting for insurance.

[Anonymous]

We have a developmentally disabled adult child which allows us to keep her on our medical insurance as long as we work. She is 32 now and a heavy user of our insurance so it's been a huge incentive to continue working. However, we will be retiring next year so will have to figure out coverage for the three of us. Her sibling is on ACA due to nonavailability of health insurance at their current job.