Tuesday, December 21, 2010

If there was affordable health insurance would there be early retirements and jobs for the youth?

I know several that work just for the health insurance.
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Years ago for my parents and most people who grew up in the last 70 to 80 years, when you retired, most companies paid a pension and continued your health insurance. So when you hit 65, medicare kicked in and your old employer picked up the supplement health, you had a pension plus social security. That's pretty good since like in my fathers case, he retired at age 55 with all of the above benefits. Today that is not the case, most employers are dropping health insurance for retirees due to the high cost. Very few employers provide pensions anymore and now we have 401K that we have to pay a high percentage of the cost with some help from our employers, but we are at risk that the 401K we choose makes money or loses a lot after the financial crisis a year ago. With a pension it was guaranteed just like social security that every month you would receive a check in a certain amount. Now many people are being forced to work to age 65 or fear if they retire early, could lose their health insurance and the cost they pay to their employer is about 1/2 cost vs a private plan if you are healthy enough to buy. If you could take out the health insurance out of the equation on retiring or keep working, yes, many might choose to retire early, but that is not going to happen as health insurance just keeps rising and will continue till someone figures out a way to get it under control.
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