We hear so much about the woes of Social Security and what will happen to future generations, that we sometimes forget about today’s retirees. Are they going to have enough for retirement today or in five years?
One such survey, by the Center for American Nurses, paints a bleak picture for nurses. The survey states that 60% of nurses, between 45 and 60, have done nothing – not one thing – to get ready for retirement.
At first look, this might be a startling fact.
How can so many nurses – a group that is educated, responsible and logical, ignore the inevitable? But, upon, closer inspection this number isn’t so shocking after all. And here’s why:
The median amount – all families in the United States have saved – is $5,000, according to the Economic Policy Institute.1
This is not much at all… so maybe it’s not odd that nurses haven’t planned either. Or do they have their own reasons – that might be different from other non-saving Americans?
Nurses Assume They Will Work For a Long, Long Time. But They Shouldn’t.
According to the survey results, reasons nurses are not prepared for retirement are similar to Americans in other industries and careers:
- Lack of Time
- Lack of Resources (Who Can Help Me? What Do I Do?)
- And Putting Others Needs First (Paying for kids’ college before funding your own retirement)
But perhaps one of the most telling reasons nurses aren’t getting their ducks in a row is because they assume they’ll be working into retirement age.
Nurses reported they planned on working full-time past 66, while others stated they would work part-time.2
So, instead of imagining tropical vacations and sleeping in, most nurses polled don’t envision retirement as anything more than an abstract concept. Something other people do.
The thing is, nursing is not easy work. It requires physical and mental stamina. As nurses age and younger nurses come on the scene, it will be harder to compete in terms of ability and pay. At some point, nurses must think about their financial future – even if they do hang in the workforce longer than others.
Why Wait?
Waiting to save money for retirement is like waiting to jump on a life boat from a sinking ship. The longer you wait, the further and harder you have to swim to get to the boat. Don’t make it that difficult.
Make a commitment today that you will do these three things:
- Figure out a good age to retire – at lease within a 5-year range (66-71)
- Get your budget in order – what are you making vs. spending
- Meet with a financial advisor – find one who comes with good recommendations and is a fiduciary
You can’t take care of others, if you don’t take care of yourself! Start today, you won’t regret it.
1http://www.epi.org/publication/retirement-in-america/#charts
2https://www.wiserwomen.org/images/imagefiles/wiserNurseInvestorRptMay2012finalRev.pdf