Throughout my years on AN, I have often come across discussions about salary, quality of life, saving habits, spending habits, definitions of luxury and wealth, etc. In those threads, I frequently read posts from some members who state that they have already saved so wisely that they are pretty sure that they will be able to retire "comfortably." Others haven't gotten there yet, but feel confident that with their current financial habits, they will absolutely get there.
Knowing there is no one definition of "enough" or "comfortably," I still wonder what the general consensus is.
How much do you need in your retirement account to feel confident in a comfortable retirement, and at what age do you plan to completely retire?
Be aware that if you plan to retire early, you need to have ample savings in a non retirement account. Most retirement vehicles will apply very painful financial penalties if you withdraw funds before 59.5 years of age.
Pensions are just about gone in the US. The only hospital system that still has them that I'm aware of is the VA. Govt pensions remain, but the majority are underfunded. I believe Detroit just docked it's retiree's pensions which was before unheard of. Many others working for multi-employer unions are seeing their pensions cut as well as the govt and the Supreme Court look the other way and don't want to have to foot the bill if the plan goes bankrupt. Most private plans pay into the Govt Pension Guarantee Plan that is supposed to backstop and insure pensions when companies go bankrupt, but it is in deficit and doesn't have enough money to keep paying out. Worse many hospital systems never paid into the plan in the first place due to a "Church" pension plan so there is no guarantee if you are stuck with a church pension. If they go bankrupt or run out of money you are simply out of luck! Most remaining private employer pensions have been frozen so if you have one it will pay out much less than planned. Mine originally was supposed to be $4500 a month, now it is only $1200 month and a church pension to boot!
The University of California and Kaiser offer their nurses (and other employees) pensions as well, but I agree that this is very uncommon in the US now.
This thread makes me even more glad I ended up in school nursing. The pay is meh, but I live within its means and I get a decent pension. I also invested in a 401K in my 20s before I went to nursing school. I still stress about it, though!
In response to: When I look around, I see much of the same thing -- people making less money than I am buying all sorts of luxury items. They seem to feel they are entitled to those things.
They say things like, "I'll never be able to afford to retire," but I don't see them making a serious effort to save. They don't seem willing to make any sacrifices now to have money later. They'd rather just whine about it -- and hope that someone comes along to rescue them when they get old. (or perhaps, IF they get old and unable to work)
I don't go out, I bring my breakfast and lunch everyday, I cook at home. I put money into my 401k but I have huge medical expenses so please don't judge someone when you have NO IDEA what someone goes through. I am not whining, I am stating a fact! and I don't expect anybody to rescue me.
My plan is to retire when I'm 40 or 45. By then I should have $300-500k in the bank. I may work 6 months a year after that for a year or two and then see if it's sustainable for the long run. I'll likely retire overseas or in Mexico.
You will have to retire elsewhere, if at all. The four percent rule states you will only be able to safely withdraw 12-20k from that amount in the bank (which should be invested so that it can grow). You will be too young to be eligible for any social security or medicare. Not to rain on your parade, but to retire extremely young, you need a TON of money to bridge the gap for when you are eligible for elderly benefits. I say this as someone who really likes Mr. Money Mustache and who saved 42% of her gross pay last year in retirement accounts alone. I am really stretching it trying to save enough to bounce out the workforce at 50...it would take a Herculean effort and possibly a windfall to retire at 40 on RN wages.
In response to: When I look around, I see much of the same thing -- people making less money than I am buying all sorts of luxury items. They seem to feel they are entitled to those things.
They say things like, "I'll never be able to afford to retire," but I don't see them making a serious effort to save. They don't seem willing to make any sacrifices now to have money later. They'd rather just whine about it -- and hope that someone comes along to rescue them when they get old. (or perhaps, IF they get old and unable to work)
I don't go out, I bring my breakfast and lunch everyday, I cook at home. I put money into my 401k but I have huge medical expenses so please don't judge someone when you have NO IDEA what someone goes through. I am not whining, I am stating a fact! and I don't expect anybody to rescue me.
Obviously, I was not talking about people like you in my post. I was talking about other people -- who do spend a lot of money of frivolous things, save nothing, and expect other people to rescue. Apparently, you are not such a person and I wish you the best of luck in the future.
After reading this, my first thought is, don't you people have pensions?
My husband retires with roughly $3600 a month, I get 50% of this as survivors benefits if he dies first. My own pension and government pension will be roughly $2300 a month. The house is paid for, no debt. We both have registered retirement savings accounts, not huge but enough to let us travel each winter.
I guess being in a nation with high taxes and universal healthcare isn't that bad at the end years of life
My mom retired as an RN in Canada and has 2 nursing pensions, and a very comfortable life. Unfortunately in the USA, we don't have nursing pensions, and must save for our own retirement with 401K. Employers contribute SLIGHTLY. I am already 52, and don't anticipate being able to retire here and make ends meet and be able to afford health insurance. I may have to move back to Canada, simply to have my health insurance covered, so that I can afford to live. The system down here keeps people working well into their 70's if they don't have spouses or big savings.
I will work full-time till Medicare eligible, then 4 days/week till age 70, then per diem. I have pretty good savings, I have (roughly) $3000/month available, and my house will be paid off before I am 70, but my family tends to be long-lived so I will need more than average. No long-term care insurance (depending on the plan I understand it can be a scam,) but I plan to die in my house anyway. When we built it, we built it handicapped accessible, so I can stay here forever (when we built it my elderly in-laws were living with us, they have since passed.)
Is not having any say in the investments for your 401k a thing? I saw that mentioned a few rimes here. I have 401k accounts from old jobs through Fidelity and Voya. I've always had options as to where I want my money invested, usually at least 20 options ranging from low/no risk to high risk investments. That seems kinda crazy to have no options for investments in your 401k.
I thought I had my retirement future pretty well planned out. But then at 58 years old (4 years ago), I was having problems at work. Nurses in their 30's were doing the physical work in less than half time it was taking me. I could remember "slow" shifts, but by then I couldn't remember any slow shifts for a long time recently. My boss was putting in the actions to get me fired. I could see the writing on the wall, but I wasn't due to my longevity that I was still working. I felt like a wind-up toy that was nearing its end-literally. Through testing I was found to have a congenital disability and was laid off. I was planning on working for another 4 years and I would be right on track for that million dollars. I made $36K in my 401K in just one year. But now I am on medicare and social security. I see my savings and IRA's (401K got switched to IRA as soon as I was laid off) differently. I am not making the kind of money that I did and knowing that I can't work harder or more hours for an unexpected expense. I never married, so bought and paid off my house with just my salary. I have not touched my IRA's yet as I am holding out as long as I can. Though my social security is $2,200/month, I had received some cash from my Mom's estate years ago. So, plans are nice, but be aware of the unexpected.
Also, the big number to think about is inflation. When I was little, 60 years ago, a candy bar costed $.05 (5 cents, but there is no cents sign anymore on keyboards). Today, a candy bar costs a dollar. My parents said when they were little, one could buy a large bag of penny candy for one penny. My BSN costed $20,000 for the 4 years and that was with 1 year in a public school to save money. My parents bought a home-kit for the same amount. Now it only buys you a new car. College is over $20,000 a year, and homes are way out there.
I have said enough. All I can say, is save as much as you can. The hospital I worked at for 36 years only provided a 4% match on one's 401K. I did do that right away, and soon I was doing 10% with the 4% match to try to save more.At $6.00/hour (my starting wage as a new RN in '78) money was tight. Even McDonald's locally is now paying $10.15/hour, but everything else is so much more expensive.### Before you give me heck, its a lot easier to say I am retired than to go through the disability line.
I thought I had my retirement future pretty well planned out. But then at 58 years old (4 years ago), I was having problems at work. Nurses in their 30's were doing the physical work in less than half time it was taking me. I could remember "slow" shifts, but by then I couldn't remember any slow shifts for a long time recently. My boss was putting in the actions to get me fired. I could see the writing on the wall, but I wasn't due to my longevity that I was still working. I felt like a wind-up toy that was nearing its end-literally. Through testing I was found to have a congenital disability and was laid off. I was planning on working for another 4 years and I would be right on track for that million dollars. I made $36K in my 401K in just one year. But now I am on medicare and social security. I see my savings and IRA's (401K got switched to IRA as soon as I was laid off) differently. I am not making the kind of money that I did and knowing that I can't work harder or more hours for an unexpected expense. I never married, so bought and paid off my house with just my salary. I have not touched my IRA's yet as I am holding out as long as I can. Though my social security is $2,200/month, I had received some cash from my Mom's estate years ago. So, plans are nice, but be aware of the unexpected.
Also, the big number to think about is inflation. When I was little, 60 years ago, a candy bar costed $.05 (5 cents, but there is no cents sign anymore on keyboards). Today, a candy bar costs a dollar. My parents said when they were little, one could buy a large bag of penny candy for one penny. My BSN costed $20,000 for the 4 years and that was with 1 year in a public school to save money. My parents bought a home-kit for the same amount. Now it only buys you a new car. College is over $20,000 a year, and homes are way out there.
I have said enough. All I can say, is save as much as you can. The hospital I worked at for 36 years only provided a 4% match on one's 401K. I did do that right away, and soon I was doing 10% with the 4% match to try to save more.At $6.00/hour (my starting wage as a new RN in '78) money was tight. Even McDonald's locally is now paying $10.15/hour, but everything else is so much more expensive.### Before you give me heck, its a lot easier to say I am retired than to go through the disability line.
Thank you for sharing your story. It sounds as if you were sensible and so when the unfortunate happened you were prepared. I hope things go smoothly for you and you remain comfortable and happy for many years to come.
I am amazed at the posts I've seen, not so much in this thread but in others, where people feel as if they will be mentally and physically fit enough to work into their 70s. Some sure but most, I doubt. My motto is hope for the best and prepare for the worst.
consult a financial advisor and put some of your OWN cash away into a sock. The way companies and stock markets are these days, do your OWN thing. Mutual funds have 3 levels. Safe, Medium, **** enjoy the ride. DO your OWN homework after you check with a financial advisor (aka sales man)
Horseshoe, BSN, RN
5,879 Posts
Be aware that if you plan to retire early, you need to have ample savings in a non retirement account. Most retirement vehicles will apply very painful financial penalties if you withdraw funds before 59.5 years of age.