nursing retirement

Nurses General Nursing

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I'm about to start nursing school, but very confused on how retirement works for nurses. Both my parents have a government job/work for the state, so they automatically get retirement once they've worked for a certain amount of years. How does that work for nurses, and how many years do you normally have to work?

Just read in the news-

A 58 year old woman is going to be the new CEO of the Lockheed Martin Corp.

Nursing is shutting out their over 50 year olds and we are giving this young person advisement to go into nursing. WHY? Be an engineer!!!!! Engineering doesn't throw out their female members when they don't do the Heidi Klum any more.

Nursing is what I want to do. When I am finished with school, I will, at most, be maybe $5000 in debt. I have $7000 saved up right now. I'm only 22, but I'm a very fiscal person, because as a child my family didn't have the most money in the world. I just want enough money to live somewhat comfortably. I don't want a career that I'll hate so I can be "rich." Maybe in ten years I'll want a different career, but I'm still young.

But thanks for the advice, everyone. I'll be sure to get a financial advisor as soon as I land my first job as a nurse. Hopefully, I'll be able to get a job in the government eventually.

Just read in the news- A 58 year old woman is going to be the new CEO of the Lockheed Martin Corp.Nursing is shutting out their over 50 year olds and we are giving this young person advisement to go into nursing. WHY? Be an engineer!!!!! Engineering doesn't throw out their female members when they don't do the Heidi Klum any more.
You a such a bummer, in general and in this thread in particular. I'm not terribly surprised that you seem to have much to be bitter about.

Other fields are feeling the recession acutely just as nursing is and it's not all roses and gum balls and "hey I'll just go be a CEO or rich IT" person. Engineers and IT professionals have gotten laid off and lost huge chunks of retirement accounts and fallen on financial ruin too, you know. The entire country has been soundly spanked financially, not just nursing.

Specializes in Gerontology.

Disclaimer - Canadian here.

Frankly I am shocked to hear that nurses in the US have no pension plan. I just cannot fathom this.

I have been paying in a pension plan since I started nursing over 25 years ago. As loriangel said, the hospital more than matches my contributions. I could actually retire at age 55 if I want, and still draw a pension of at least @ 2000/month - probably more. Plus I have been contributing on my own to RRSP (registered retirement saving plans) which I think is simiar to the American 401.

I just cannot imagine not having a pension plan in my workplace!

Good advice from llg, hiddencatRN, and others, on planning, budgeting, and making sensible decisions. It is very heartening to know that some people have been successful in saving for retirement and in some cases have good retirement plans from their employment. I feel that the people who offered the other side of the story, heartbreak and great financial loss and no pension or retirement to look forward to, brought equally valuable teachings: There is no security. Bad luck, misfortune, unfair treatment, can happen to anyone, and can wreck your finances even if you have planned well and even if you have saved. To the OP, I believe it is good to see the possibilities of both sides, as both are true. You can only do your best. There is much that one cannot control.

Specializes in Emergency & Trauma/Adult ICU.

Nursing is my second career, and I have seen no significant across-the-board differences in retirement benefits in healthcare vs. the nonhealthcare industry in which I previously worked. All 3 hospitals where I have worked have offered a defined benefit/cash accumulation plan (pension) in addition to offering a 401(k) or 403(b). Having said that, however, I do agree that you are unlikely to see retirement plans equal to your parents' governmental benefits -- that is generally true of employment in the private sector vs. the governmental sector. Kudos to you for considering this important fact of life so early! :)

Specializes in Nursing Professional Development.
Nursing is what I want to do. When I am finished with school, I will, at most, be maybe $5000 in debt. I have $7000 saved up right now. I'm only 22, but I'm a very fiscal person, because as a child my family didn't have the most money in the world. I just want enough money to live somewhat comfortably. I don't want a career that I'll hate so I can be "rich." Maybe in ten years I'll want a different career, but I'm still young.

But thanks for the advice, everyone. I'll be sure to get a financial advisor as soon as I land my first job as a nurse. Hopefully, I'll be able to get a job in the government eventually.

As you illustrate, not everyone needs or wants the job that "pays the most -- even if they hate it." Other people (like you and me), want to do the work of nursing -- and learn to live well within the salary range we can reasonably expert to earn in the nursing profession.

Of course there are jobs that pay more than nursing -- but not everyone can be a movie star, sports star, CEO, etc. The majority of people will have to learn to within more modest means and it sounds like you are planning well to do just that.

I wish you the best of luck for having a long, successful, and satisfying nursing career.

Specializes in Nursing Professional Development.
Disclaimer - Canadian here.

Frankly I am shocked to hear that nurses in the US have no pension plan. I just cannot fathom this.

I have been paying in a pension plan since I started nursing over 25 years ago. As loriangel said, the hospital more than matches my contributions. I could actually retire at age 55 if I want, and still draw a pension of at least @ 2000/month - probably more. Plus I have been contributing on my own to RRSP (registered retirement saving plans) which I think is simiar to the American 401.

I just cannot imagine not having a pension plan in my workplace!

It's not as bad as you may think. The whole system of retirement funding is just a little different in the US than it is in Canada. We do have a government retirement program that just about everybody qualifies for. We don't call it a "pension." We call it "Social Security" (which pays cash each month) and "Medicare" (that provides basic health care to everyone over age 65).

In addition to those government programs, there are 2 additional programs most people can choose to participate in if they want to. The first are programs run by our employers -- who can either provide pensions for us based on the number of years we work for them and our level of income -- or provide 401 or 403 plans that we contribute to build up our retirement savings through the saving and investment of that money. For many 401 or 403 plans, the employer also contributes some money into these plans. We use the term "pension" here to refer only to programs that employers provide, pay most of the expenses for, and provide a defined (guaranteed) payment for the rest of our lives. The 401 and 403 plan money is not referred to as "pension" money.

The other program is that people who make less than a certain about (for single people the cut off is around $100,000 per year) can contribute to an Individual Retirement Account to provide extra savings for retirment. The IRA's, 401, and 403 accounts all have tax benefits associated with them to encourage people to encourage people to participate. The income from such accounts are not "guaranteed." The amount you will get will depend on how much money the investments earn. We don't call that type of retirement money "pensions."

So ... most people who work have access to some sort of program to save for retirement and the government provides Social Security and Medicare as a basic level foundation. We are not "un-covered" as you may believe.

Specializes in Leadership, Psych, HomeCare, Amb. Care.
Nursing is what I want to do. When I am finished with school, I will, at most, be maybe $5000 in debt. I have $7000 saved up right now. I'm only 22, but I'm a very fiscal person, because as a child my family didn't have the most money in the world. I just want enough money to live somewhat comfortably. I don't want a career that I'll hate so I can be "rich." Maybe in ten years I'll want a different career, but I'm still young. But thanks for the advice, everyone. I'll be sure to get a financial advisor as soon as I land my first job as a nurse. Hopefully, I'll be able to get a job in the government eventually.
It's great that you are following your dream! We have government & non government sectors. Many government pensions are woefully underfunded, and only about 21% of companies are offering traditional pension plans. 401k/403b are pretax dollars, and you pay taxes when taken out in retirement. A Roth IRA or Roth 401/403 is funded with post tax earnings and all earnings accumulated are now tax free. Choose that option if you feel taxes are likely to be hired decades from now when you retire. You don't really need to pay a financial advisor at this point, as the employer's retirement administrator ( often Fidelity, Vanguard, T Rowe Price, etc) will provide basic information.

What you DO WANT TO DO is to immediately sign up for deductions necessary to gain the maximum employer match. That's free money you don't want to leave on the table, and really won't miss it as you don't "see it" since it's just one more deduction.

Thank you to the op and to all who responded! I think often about this subject and am grateful someone found a good way to bring it up.

As ive gotten older and had to become a responsible adult, Ive often thought to myself & discussed with my family the fact that most young adults have NO IDEA what to do to set up a sound financial plan. Honestly, i was so clueless to so many aspects of so many important things. I had no idea how to deal with what to claim for taxes when i got my first job. My employer (who was a little clueless too) suggested what to claim and i just went along with it. Lol i still barely know! And when it was time for me to file my first tax return, i had no idea what i was doing. Thank god i had my mother to help me figure it out. But esp with taxes, mistakes made bc of a knowledge deficit can turn into a legal issue if the irs finds out.

Alot of people entering their career know that they want a solid financial plan, and we want to be successful but have no clue HOW! I STRONGLY feel that they should offer classes as part of high school educating us in the basics of taxes, options, and retirement. Most of us have no idea where to start. Im terrified of being so ignorant to matters of such great importance. I will have to find someone in my area to assist me, a financial planner or someone. Bc what little information thats out there is so confusing to me. Not to mention the stock options and other investment options we have when we get that nursing job. This has become a personal goal of mine- to educate myself regarding my choices/options. I think its so crucial to be able to know how to handle our finances.

Excuse the length if my post please! I just am so confused about alot of this, and wanted to post in case others feel the same. Thank you for all advice previously posted! ; )

I graduated RN in 1995. Various years I was told that there were hiring freezes or bad economy. Today an RN has a 20% chance of being employed in a Hospital or Nursing Home. APx 30% are unemployed;10%out-of-work, 10%looking-for-work, 10%gave-up looking-for-work. Nurses are required to obtain advance education. Many institutions out-side" of the hospital network are all "HIRING" LPN"S due to the ACA: Affordable care Act, All institutions are economizing and putting the LPNS in Homehealth. The last 5 years I have unfortunately only worked part time. This past year I only worked One day a week for a 12 hour shift. making 300.00 a week. While CNA's working full time make 600. a week or 2400.00 a month. The CnA's were i worked drove "brandNew" cars. And I had to apply for food stamps. THe Jobs ARE NOT THERE. It would be wise for Medical Institutions to have programs in which Nurses can retain their skills and offer guidance to new nurses. The only jobs that offer pensions/retirement would be working a FULL time job, or working in the Hospit.als or Nursing HOmes. Good luck. They are also hiring foreign Nurses signing contracts for 3 years in which they are usually paid a slightly lower rate but hold the job. They also are hiring foreign nursing Aides: many speak fairly good english. However I have noticed a Change in behavior when they become "AMERICANIZED". They are rude, they don't follow nurses staff directions , do what they want and i think almost reckless. They have a TV" like Vision' of what America is like, like A TV REALITY SHOW. I fear for our education is a $ burdon. Many single mom's, and having educational debt's to pay, plus "child rearing responsibilities" and Puts an ENOURMOUS $ BURDON AND ENOURMOUS WORKLOAD on working Nurses in this country. Good luck to all of us. Also States need to examine the Nurse to Patient Ratio , and make laws for nurses to work in a safe environment.

I also suggest that each Nurse research the Turnover rate in Nursing Homes and the effect it has on support Staff and quality of patient outcome. Arizona has a 60% Nurse turnover rate. (Hiring/firing). CNA's have like a 40% retention and a 61% turnover. Some states have an 80% turnover. Unsure if this is because the right to Hire/fire. Montana has a 70% retention of DON"s and a 8% turnover rate. I'm sure it's because the rt to hire and fires exclude Montana is the only state that does not have this law.

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