Nursing Retirement Plans

oramar · Jul 13, 2009

That varies so widely depending on where you are and for whom you are working. The majority of institutions have switched to 401k and 403b and I am sure you have heard what a disappointment they turned out to be. However, if you go to work for the government there is a chance you would still be eligible for a defined benefit pension. Honestly, the best place to work is a place where they have both. My husband's union provided for both and that is such a blessing. Also, unionized hospitals will have better pensions than non-unionized, they also are more likely to have defined benefit pension. A lot of places have nothing, yes I mean zero, zilch, nada.

Quickbeam, BSN, RN · Jul 13, 2009

I wish more nurses asked these questions! I once asked a hospital administrator why they provided such horrific retirement plans and his answer?..."nurses just don't care". I once worked at a hospital where a 30 year nurse found out upon retirement that she'd be getting a whopping 150$ a month for life. Please read the fine print on those retirement plans!

I left the private sector for a government RN job solely for the pension. After I qualify next year, I plan to go back to the private sector with my pension in hand. It is rough out there...read and save!

mzjennx, BSN, RN · Jul 13, 2009

Are you working at a hospital now? Check with the HR to see what are the retirement benefits and how to qualify. It could depend on your hours work, how many hourse you have already work, your job status, etc.

My hospital, Kaiser Permanente in Hawaii, offer a TSP with Vanguard Group. I dont know much about these retirement saving programs, except that you invest pretax how much percent of your paycheck and that money is invest into stock, bonds, etc depending on your preference.

I hope this kind of helps. I still need to call my Vanguard rep to get more info on how to distribute my $$$ since the economy shaky right now.

DManAZRN · Jul 13, 2009

401K is better than a company pension. If the company goes belly up, no pension. Did'nt we see this somewhere recently? What's the street with the big wall?

I thought the new retirement age is now like 72 or something....

My plan is to die right as I run out of money, or just burn out and fade away into poverty and become a patient who lives in the hospital! Look ma, free food, drugs and housing, complements of the taxpayers!

I'm finally getting out what I paid in!

SharonH, RN · Jul 13, 2009

I work for Kaiser also. They offer a pension as well as a 401(K) with an anemic company match. I don't even consider the pension or social security when doing my retirement planning and neither should anyone else considering the events of recent years. If they are still around when I retire then they will be gravy. I invest in the 401(K) and I have a ROTH IRA. Max out your ROTH every year. It's after tax contributions but when you get ready to withdraw, it will be tax free. Another piece of retirement planning should be remaining debt free, long term care insurance and trying to stay in good health. It sounds corny but I work with the elderly and healthcare is the biggest expense for them with the second being grown children moving back home.

elkpark · Jul 13, 2009

401K is better than a company pension. If the company goes belly up, no pension. Did'nt we see this somewhere recently? What's the street with the big wall?
I thought the new retirement age is now like 72 or something....
My plan is to die right as I run out of money, or just burn out and fade away into poverty and become a patient who lives in the hospital! Look ma, free food, drugs and housing, complements of the taxpayers!
I'm finally getting out what I paid in!

Not necessarily true -- there is a federal agency, The Pension Benefit Guaranty Corporation (PBGC), similar to the FDIC, that protects pensions. If a company with a pension plan "goes belly up" that agency steps up and covers the pensions, up to an established maximum amount per employee. That ceiling figure means that a lot of higher-paid executives end up getting quite a bit less than they would have, but the ceiling is high enough that "regular" employees, like most RNs, would not take a loss. It has been in the press over the last few years that that agency is really struggling (and Congress has had to find more money for it) because so many companies have been going bankrupt (some of them primarily for the purpose of getting out from under their pension responsibilities), many more than anyone ever planned on the agency having to cover. 401Ks (and 403bs) are a clever way for companies to shift the responsibility, cost, and risk of retirement away from themselves and onto the employee. My personal IRA and 403b accounts have lost ~30% of their value over the last couple years -- that is definitely not "better" than a traditional defined-benefit pension.

There is no official "retirement age" -- one can retire whenever one chooses and is financially able. I assume you're referring to the age at which one becomes eligible for Social Security. That figure is gradually being increased over time for younger persons, as part of efforts to improve SS's financial situation. 65 was originally fixed as the eligibility point for Social Security because that was the average life expectancy at that time. Now that people are living so much longer, it makes sense to raise the eligibility age. You get an annual statement from the Social Security Administration, and that statement includes at what age you, specifically, become eligible for SS benefits.

http://www.pbgc.gov/media/news-archive/news-releases/2009/pr09-44.html

llg, PhD, RN · Jul 13, 2009

The vast majority of hospitals I am familiar with offer 403-B plans (or 401- k plans if they are for-profits).

I have regularly saved through the 403-B and also have a Roth IRA. I try to max both out every year. I took a few years off duing my 20's and 30's to go to graduate school twice. So, I feel like I have a little catching up to do. I am 54 years old and in spite of the current economy, have about 300K in those plans. (I also have a little money I inherited from my parents.)

Happysouth1 · Oct 17, 2010

hey is it true that you can invest into 401k after one year of employment with Kaiser?

OttawaRPN · Oct 17, 2010

My nursing retirement plan is to win the lottery and buy a remote island off the coast of Bora Bora to happily live out my remaining stress-free days.

*wine

llg, PhD, RN · Oct 17, 2010

My nursing retirement plan is to win the lottery and buy a remote island off the coast of Bora Bora to happily live out my remaining stress-free days.
*wine

Good luck with that.

RevolutioN2013 · Oct 17, 2010

I do our HR at work (not a nurse yet) and qualification to invest in a 401k plan is federally legislated. You must get 1000 hours in a calendar year and be at least 18 years of age while doing so in order to qualify to put YOUR OWN money into a company's 401k plan. Whether or not the company chooses to match what you put in with their money or not is part of what they decide they will do when they set up their 401k plan. 401k plans are as safe as any investment into the stock market can be depending on how you apportion your investments. There are a LOT of fail-safe's in place to make sure that participants do not end up in an "Enron" type of situation. Most 401k plans have the services of a licensed financial planner that comes for free and that person can help you decide how you invest your money within the options that are available in the plan. The prevailing advice that I have seen from financial planners is that you should always participate in the 401k if the company offers matching because they are giving you free money. If they do not offer matching then a financial planner could work with you to help you decide which of the types of retirement financial vehicles will work best with your personal situation.