[hen-ui-dynamic-experience placement=”aboveTheFold” /][hen-ui-text variant=”b4″]More than 1 in 4 [hen-ui-link href=”https://nursejournal.org/registered-nursing/”]registered nurses (RNs)[/hen-ui-link] plan to retire or leave the profession in the next five years, according to the 2022 National Nursing Workforce Study.[/hen-ui-text][hen-ui-text variant=”b4″]If you’re nearing retirement or still in the early years of your nursing career, it’s always a smart idea to plan ahead. Understanding your savings options, researching pensions, and investigating employee retirement benefits can set you up for financial freedom in your retirement.[/hen-ui-text][hen-ui-flex gap=”xl” align=”left” direction=”column”][hen-ui-flex gap=”xs” align=”left” direction=”column”][hen-ui-heading variant=”h2″]Popular Online RN-to-BSN Programs[/hen-ui-heading][hen-ui-text variant=”b4″ color=”subtext”]Learn about start dates, transferring credits, availability of financial aid, and more by contacting the universities below.[/hen-ui-text][/hen-ui-flex][hen-ui-dynamic-experience placement=”belowTheFold” /][/hen-ui-flex][hen-ui-heading variant=”h2″]When Nurses Should Start Saving for Retirement[/hen-ui-heading][hen-ui-text variant=”b4″]It’s a good idea to start saving for retirement as soon as possible. The earlier you start saving, the longer your investment period and the more options you will have when you retire.[/hen-ui-text][hen-ui-text variant=”b4″]It’s never too late to start planning for your retirement. Nurses in every stage of their careers must understand the options available through their employers or unions. Building a solid financial nest egg ensures you can retire when and how you want.[/hen-ui-text][hen-ui-heading variant=”h2″]How to Set Saving Goals for Retirement[/hen-ui-heading][hen-ui-text variant=”b4″]How much will you need to save for retirement? When setting your savings goals, Jim Crider, a financial planner and specialist in early financial independence, tells NurseJournal, “Everything in life requires a decision, mandates tradeoffs, and has an opportunity cost. If you choose one thing, you are, intentionally or unintentionally, giving up another.”[/hen-ui-text][hen-ui-text variant=”b4″]Crider suggests saving 10-15% of your gross monthly income toward retirement, based on average retirement age (approximately 65) and average lifestyle goals. While that figure represents a general rule of thumb, several factors influence just how much you need to start saving. Consider your current expenses and spending habits, family obligations, and what you envision for your future lifestyle options. Learn about any retirement plans offered through your employer or union and when and how much you can contribute.[/hen-ui-text][hen-ui-text variant=”b4″]When setting up your long-term financial goals, consider including other sources of income that may be available to you in the future, such as Social Security benefits, trusts, or other savings accounts.[/hen-ui-text][hen-ui-heading variant=”h2″]Choosing Between Retirement Plans[/hen-ui-heading][hen-ui-text variant=”b4″]Compensation for nurses consists of more than just salaries. According to the U.S. Bureau of Labor Statistics, 91% of RNs receive retirement benefits from their employees as of March 2023, compared to 73% of workers in other fields.[/hen-ui-text][hen-ui-text variant=”b4″]Given the variety of plans available, RNs may find it challenging to choose the best plan to fit their needs. As Crider points out, “There are loads of types of investing accounts available, and keeping up with what they are, let alone which one(s) to use, can be overwhelming.”[/hen-ui-text][hen-ui-text variant=”b4″]When deciding on an RN retirement plan, your top considerations should be whether your employer matches your contribution, the intended use of the savings account, and the specific tax advantages associated with the plan. Additionally, some types of retirement accounts do not allow early access or will charge you a penalty if you need to withdraw funds before you reach the age of 59.5.[/hen-ui-text][hen-ui-text variant=”b4″]Your employer’s human resources department can provide specific information about retirement plan options and matching policies.[/hen-ui-text]

[hen-ui-table][hen-ui-table-caption]Retirement Plans[/hen-ui-table-caption][hen-ui-table-header][hen-ui-table-row][hen-ui-table-head scope=”col”]Retirement Plan[/hen-ui-table-head][hen-ui-table-head scope=”col”]Pros[/hen-ui-table-head][hen-ui-table-head scope=”col”]Cons[/hen-ui-table-head][/hen-ui-table-row][/hen-ui-table-header][hen-ui-table-body][hen-ui-table-row][hen-ui-table-head scope=”col”]401k and 403b[/hen-ui-table-head][hen-ui-table-cell data-title=”Retirement Plan”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Employers often match your contributions as part of your employment package.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Most employers set up contributions automatically deducted from your paycheck, making it easier to contribute.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][hen-ui-table-cell data-title=”Pros”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]You have limited control over how the plan determines investment and distribution rules.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]You can sometimes only make contributions through your employer after working there for a specific period of time.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]You will have to pay a penalty if you access your funds early.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][/hen-ui-table-row][hen-ui-table-row][hen-ui-table-head scope=”col”]Roth IRAs[/hen-ui-table-head][hen-ui-table-cell data-title=”Retirement Plan”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]You can make contributions anytime and choose where to hold your account and what kinds of investments to include.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]You can withdraw your initial contribution anytime, without taxes or penalties.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][hen-ui-table-cell data-title=”Pros”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]The maximum contribution is lower than for the 401K or 403b.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Withdrawals beyond the initial contribution before the age of 59.5 may be subject to taxes and penalties.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][/hen-ui-table-row][hen-ui-table-row][hen-ui-table-head scope=”col”]Traditional IRAs[/hen-ui-table-head][hen-ui-table-cell data-title=”Retirement Plan”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Traditional IRAs are tax-deferred retirement plans that you control, independent of your employer, similar to Roth IRAs.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]You receive a tax deduction on your contributions every year.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][hen-ui-table-cell data-title=”Pros”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]These plans have contribution limits, usually $7,000 per year or $8,000 if 50 or older.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]If you withdraw funds before age 59.5, you must pay a 10% early withdrawal penalty in addition to income tax.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][/hen-ui-table-row][hen-ui-table-row][hen-ui-table-head scope=”col”]Health Savings Accounts[/hen-ui-table-head][hen-ui-table-cell data-title=”Retirement Plan”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Health Savings Accounts (HSA) are not subject to income tax; earnings in the account grow tax-free.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Unspent funds roll over at the end of the year, available for future healthcare expenses.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][hen-ui-table-cell data-title=”Pros”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]To qualify for an HSA, you must have a high-deductible healthcare plan, which may lead to a financial burden if you need an expensive medical procedure.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]You will have to pay a 20% early withdrawal penalty in addition to income tax if you take out funds before the age of 65. After 65, you still must pay taxes but not the penalty.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][/hen-ui-table-row][hen-ui-table-row][hen-ui-table-head scope=”col”]Pensions[/hen-ui-table-head][hen-ui-table-cell data-title=”Retirement Plan”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Pensions guarantee payments after retirement without using your other savings.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Most employers deduct your pension contribution before deducting taxes, giving you a tax break.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][hen-ui-table-cell data-title=”Pros”][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]You cannot withdraw funds before you reach retirement age.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Inflation may outpace your fixed pension income.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][/hen-ui-table-cell][/hen-ui-table-row][/hen-ui-table-body][/hen-ui-table]

[hen-ui-heading variant=”h2″]Types of Pension Retirement for Nurses[/hen-ui-heading][hen-ui-text variant=”b4″]Traditional pension plans, which guarantee a fixed income in retirement, have become less common for nurses and other professionals employed in the private sector. Robert Riedl, a family wealth management executive, attributes the demise of nursing pensions to cost-saving efforts by employers. He tells NurseJournal, “Pension plans are going away because the employer liability and cost of funding a future defined pension payment plan for employees is more expensive than just funding a current year retirement contribution to the employee.”[/hen-ui-text][hen-ui-text variant=”b4″]Despite this trend in healthcare, pensions remain common for nurses employed by state or federal government agencies or large healthcare organizations. Nurses may participate in their union’s pension fund if their bargaining unit has negotiated a contract with their employer.[/hen-ui-text][hen-ui-text variant=”b4″]Pensions with matching employer contributions provide nurses with a relatively easy way to begin saving for retirement. However, financial advisors caution against counting on your pension alone. Melissa Ann Cox, a family-oriented financial planner, tells NurseJournal, “The amount of the benefit is based on a myriad of factors, including the employee’s age, years of service, and salary while employed.” As a rule, nurses should always include other kinds of investments or sources of income in their retirement planning.[/hen-ui-text][hen-ui-text variant=”b4″]Pension benefits may not escape the effects of inflation since many do not adjust for increases in the cost of living. Some state-system employers offer pensions in place of paying into Social Security. In these cases, your pension reduces or entirely replaces Social Security benefits unless you meet specific qualifications. Unlike traditional or Roth IRAs, some pension plans do not offer a survivor benefit option that allows your funds to go to a family member or other designated beneficiary in the event of your death.[/hen-ui-text][hen-ui-heading variant=”h2″]Budgeting Tips for Nursing Retirement Goals[/hen-ui-heading][hen-ui-text variant=”b4″]All three financial consultants interviewed for this guide stress the importance of constructing a budget that reflects your current priorities but allows for flexibility.[/hen-ui-text][hen-ui-text variant=”b4″]For many nurses, saving for retirement takes a backseat to other pressing obligations, like paying off student loans and daily living expenses. Nurses can get on track for retirement planning by establishing a realistic budget that includes fixed expenses (e.g., loan payments, housing, food) and variable expenses (e.g., clothes, hobbies, dining out, and other fun activities). Once you track your actual expenses, you can better determine how many dollars to allocate to retirement savings.[/hen-ui-text][hen-ui-text variant=”b4″]Crider, Cox, and Riedl all agree on the value of seeking advice from a financial advisor. These professionals can help you understand the options available to you and avoid obstacles so that you invest your money wisely and make accommodations as your needs change.[/hen-ui-text][hen-ui-heading variant=”h2″]Frequently Asked Questions: Nursing Retirement Plans[/hen-ui-heading][hen-ui-accordion variant=”no-background”] [hen-ui-accordion-item title=”What is the best retirement plan for a nurse?” expanded=”true”] [hen-ui-text variant=”b4″]The best retirement plan for nurses depends on your employer’s benefits program. Investing in an employer match program can jump-start your savings. Pension plans for nurses are another good way to plan for retirement.[/hen-ui-text] [/hen-ui-accordion-item] [hen-ui-accordion-item title=”At what age do most RNs retire?”] [hen-ui-text-stack gap=”sm”] [hen-ui-text variant=”b4″]Americans retire at age 62 on average, according to a [hen-ui-link href=”https://www.massmutual.com/global/media/shared/doc/2024_massmutual_retirement_happiness_study.pdf” target=”_blank”]2024 MassMutual survey[/hen-ui-link]. However, some RNs retire earlier, and many say they are currently planning their retirement. That means it’s important for RNs to start planning their retirement early.[/hen-ui-text] [/hen-ui-text-stack] [/hen-ui-accordion-item] [hen-ui-accordion-item title=”Do registered nurses get retirement benefits?”] [hen-ui-text variant=”b4″]Yes, most RNs receive retirement benefits through their employer. According to the Bureau of Labor Statistics, 91% of RNs received employer-sponsored retirement benefits, compared to 73% of all workers in 2023.[/hen-ui-text] [/hen-ui-accordion-item] [hen-ui-accordion-item title=”What is the average pension for a nurse?”] [hen-ui-text variant=”b4″]The average pension for a nurse depends on their pension plan and years of employment. Nurses with a pension can also save for retirement using other retirement plans such as a Roth IRA.[/hen-ui-text] [/hen-ui-accordion-item][/hen-ui-accordion]