Nearly two out of three American nurses worry that they will never be able to fully retire, according to a new study from Fidelity Investments.
the report projects that nurses will replace only 59 percent of their ending income in retirement, nearly 30 points less than the company's suggested income replacement target of 85 percent. For the report, Fidelity analyzed nearly 28,000 nurses' savings behaviors. Of these, 63 percent worry they will never be able to fully retire, and four in five want help to better plan for retirement. In addition to these findings:
- Nurses' total savings rates, incorporating both employer and employee contributions, are at 12.9 percent, within Fidelity's suggested 10 percent to 15 percent range. Nurses ages 20 to 29, however, have a lower-than-recommended savings rate of 9.6 percent. "At a minimum, nurses of all ages should defer enough to take advantage of their employer's matching contribution," according to a Fidelity announcement.
- Only 14 percent of all nurses make use of financial guidance, and the figure drops to 9 percent among nurses ages 20 to 29.
- One-third of nurses who receive financial guidance took positive action, according to an informational graphic from Fidelity.
- A 1 percent increase in savings rates could mean $180 more in monthly retirement income.
"Nurses are constantly making personal sacrifices to ensure all of the other people in their lives are getting proper care. It's part of what makes them so special. While this is admirable, nurses deserve the time and resources to ensure the stability of their own financial future," Kathleen A. Murphy, president of personal investing at Fidelity Investments, said in the statement.
"Nurses should feel empowered not just when they are caring for their patients and families, but also when considering their lifestyle in retirement, and National Nurses Week is a perfect time for this dedicated group to take a few minutes to tend to their retirement readiness and financial health."
In light of a struggling hospital job market, trained nurses are increasingly seeking jobs in rehabilitation centers, outpatient clinics and patient homes, even though this means lower median wages, FierceHealthcare previously reported.
To learn more:
- read the report (.pdf)
- here's the infographic
- read the statement