nursing retirement

perioddrama · Nov 8, 2012

Are you talking about a pension plan? I think it depends on where you work. A state/federal job requires you to work x amount of years in order to qualify, and the longer you work, the higher your pension plan will be when you retire.

As to private companies, I do not know many that offer pension plans anymore. What a lot of hospitals/employers have is a retirement savings system where you contribute money in to a 401K plan, or something similar, and the hospital/employer will match up to a certain percentage of what you put in.

loriangel14, RN · Nov 8, 2012

It would depend on where you work. I contribute to the Canada Pension Plan through my paycheck and I also contribute to the Healthcare of Ontario Pension Plan ( which my employer contributes to as well. $1.26 for every dollar I put in).I can access both as early as age 60, but I will get more if I wait until I am 65.

TheCommuter, BSN, RN · Nov 8, 2012

In the United States, unless you work for a company or entity that offers employer-sponsored pension plans to their employees, you will have to save for your own retirement. And in this day and age, employer-sponsored pension plans are rare in the United States.

The overwhelming majority of workers in the U.S. must save for retirement by contributing their own money to retirement accounts such as a 401k or an IRA (individual retirement account). If you do not save wisely, you could very well reach old age and retire with not one dime to live on.

rita359 · Nov 8, 2012

If you do not save wisely, you could very well reach old age and retire with not one dime to live on.

If you don't save on your own there will be no such thing as retiring.

anotherone, BSN, RN · Nov 8, 2012

unless you work for the state in a state psych hospital or prision for example there is most likely not a pension of anykind. never heard of this in any non state nursing job. there are 401ks and such some employers offer and might contribut to, varies by hospital, you have to save money or invest ( many options) mostly on your own

classicdame, MSN, EdD · Nov 8, 2012

Start by talking to a financial advisor. They will help you set up an account that meets your needs and you can add to it every month. Payroll deductions are the easiest because you won't miss the money. I work in a hospital that provides a 401K and they match up to 5%, but that is not true in every facility. By the time you are ready to retire you may not have social security funds to live on and it was never meant to be the only income for retirees anyway. Start saving!

llg, PhD, RN · Nov 8, 2012

My hospital offers a standard 403B plan. (That's similar to a 401K plan, but for non-profit institutions.) I contribute a portion of my paycheck every 2 weeks to my 403 account and my employer also makes a contribute. For every dollar that I contribute to the plan, my employer will put in $.50, up to a maximum amount worth 3% of my annual salary. After that, I am allowed to contribute up to a maximum of just over $20,000 per year, but the employer will only put in a maximum of 3%.

When I change jobs, the money in my 403B account can either be left in that account to be used in my retirement or I can transfer it to another account (such as an Individual Retirement Account [iRA] or my new employer's retirment plan). I have participated in my employers' 403B programs since I was in my mid-20's. I am now 57 years old and have over $500,000 saved up in my two retirement accounts -- the one with my current employer, and the individual IRA I have with another company that consists of all the money from my old employers that got transferred into that IRA as I moved from one job to another. I also have a third account that is the money left over from my parents' IRA after they died -- giving me a total of about $750,000 at the moment. By the time I retire in my early to mid 60's, I expect to have over $1 million in retirement savings. Once retired, I will collect Social Security (probably about $2500 per month in today's dollars) ... and have the income from investing that $1 million dollars to live on. With that much money saved, I will be able to have a nice income on good safe, conservative investments without having to dip into the principle very much at all. That should keep me indefinitely and leave a nice inheritance for my heirs.

The trick to being successful in building such a retirement nest egg is to start saving early. Have the money taken from your paycheck before you get it ... always get all the matching money you can get from your employer (That's "free" money.) ... and never take any money out of your retirement accounts. For example, when I went to graduate school when I was in my 30's, I refused to touch a penny of my retirement money. The same thing when I bought my home. Putting money away for retirement comes first ... then I adjust my lifestyle and personal consumption to fit the money I have left to spend. I don't buy stuff I want and then save "whatever is left over."

You can do it if you plan for it -- and by asking the question, it sounds like you are the kind of person who will plan for it and do just fine.

hiddencatRN, BSN, RN · Nov 8, 2012

Nongovernmental pension plans in the US are indeed rare, but I work at two hospitals that offer them. The place I'm full time at now doesn't match the 403(b) savings at all because they have a separate pension plan. The catch is...well, you have to work there until retirement and the pension is better the longer you've worked there. Spending an entire career with one employer is *really* unappealing to me so I actually would prefer to have a contribution match instead.

In addition to retirement accounts DH and I also have a whole life policy as well.

dudette10, MSN, RN · Nov 8, 2012

The PPs covered nearly everything, but I'll add just one more thing. If you are lucky enough to find an employer with a pension plan, you have to work there a certain number of years to be vested, i.e. eligible to receive a pension. In most places with a pension plan, it is five years. If you quit prior to five years, no pension. If you work five years or more for the employer, then quit, you can get a pension at retirement age.

I worked 10 years for one company and my pension amount will be a grand total of $350 per month.

Esme12, ASN, BSN, RN · Nov 8, 2012

Bu tthere are no penaions plans any more....and if you become ill with an unexpected illness you are just out of luck. You will not have any insurance coverage when you retire and will have to pay cash. My advice? After 34 years of being a nurse......Find a government job, work at the VA.

DSkelton711 · Nov 8, 2012

My retirement will begin when my life ends. My husband and I lost big in our retirement plans (what was left after 9/11) when he got laid off 3 times in 2 years and I became disabled for 2 years. We are in our 50s and don't see how we can make that time up, especially since he makes less than he did 5 years ago and I can only work parttime. Get a good financial adviser and do your homework. We had 401k plans. When the market hit bottom after 9/11 that wiped out half of our retirement, so don't put all your eggs in one basket! School nurses are probably eligible for pension plans, but I am not sure. Remember to live within your means, and if married, try to have no bills that one income wouldn't be able to cover.