In the US, what are the financial realities of having children after age 40?

Later parenthood in the US is increasingly common but introduces unique and often unforeseen financial burdens, particularly regarding medical costs and lost earning potential.

Trends in Parenthood and Financial Strain

• The average age of first-time parenthood in the US has risen, with 40+ women accounting for 4.3% of newborns in 2025, up from 1.2% in 1990.
• Later parenthood often brings unexpected financial pressures, including balancing childcare costs with retirement savings or managing age-related health issues.
• High-age pregnancy can involve costs for IVF and egg/embryo storage.

Case Studies: Financial Realities of Later Parenthood

• Ed Myrick & Noel Keomanila: After his son’s birth, Myrick paused his retirement savings to contribute $75k to a 529 plan. Myrick transitioned from banking to real estate investing, losing employer benefits but gaining time with his child.
• Medical issues (e.g., Myrick’s torn biceps, neck surgeries) incurred significant medical bills that eroded retirement savings, making adequate life insurance quotes difficult at his age.
• Laura Orrico: After her husband Ryan’s cancer diagnosis, they underwent IVF treatments costing $70k-$80k in accumulated expenses, much of which was self-funded, including egg/sperm storage fees.
• Orrico continued to pursue parenthood in her late 30s/early 40s, incurring over $100k in cumulative expenses across treatments.

Career and Financial Trade-offs

• Lisa Kalodner: She weighed high-level career progression against the time commitment required for parenthood, noting that maintaining a high-level role often requires external childcare, and career sacrifices can equate to hundreds of thousands of dollars lost.
• The decision to delay parenthood or career advancement forces difficult financial trade-offs regarding peak earning years versus family presence.