Retire Late to Stay Covered by Health Insurance

In a new study from the Employee Benefit Research Institute, workers often feel that working at a job longer then they wanted to would maybe help keep their health insurance, but the odds don’t seem an advantage any longer. Most people come under Medicare at the age of 65, and many workers would like to delay retirement so that they don’t lose on insurance. Though current retirees feel differently – less than 1 in every 5 - 19%, were able to continue work and remain covered by employer based insurance.

Those covered by job insurance had to leave jobs before 65 – at times due to health problems or disability, average of 51%, due to downsizing or closures around 21% had to leave, and to take care of a family member, an average of 19% left.

Many Americans found themselves without jobs before they had planned.

Fortunately for them there is change round the corner, with the Patient Protection and Affordable Care Act – by 2014, many people wanting to retire could soon buy health insurance directly from Health Insurance Exchanges. This could also help employers as they could cut back on retiree health benefits and instead provide retirees with the parachute that would help them.

According to EBRI the increasing proportion of older employees could retire earlier, since they were assured of health cover.

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Hannah Punitha (IRDA Licence Number: 2710062)

Glenn Ruffenach, Feb 2013

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Source-Medindia