As the U.S. economy has continued to improve, so have nurses’ retirement savings, according to a new report.
Fidelity Investments discloses this finding in its third “Nurses Retirement Study.” Conducted by Versta Research, the online survey polled a national sample of 536 practicing nurses.
The report reveals that one-quarter (26 percent) of nurses with a workplace retirement savings plan have now accumulated more than $100,000 in assets, up from 18 percent in 2011 when the economy was still recovering from the financial crisis.
However, for those participating in their workplace plans, savings rates are still less than optimal, especially among younger generations. Nearly two-thirds of nurses (62 percent) acknowledge they are not saving enough for retirement. Gen Y (born 1979-1995) and Gen X (born 1965-1978) nurses are saving a median of 5 percent and 6 percent respectively.
However, Boomer nurses (born 1946-1964) are on a better track, saving nearly twice as much as their colleagues, at 10 percent.
Given their shortfall in savings rates, Gen X nurses (55 percent) and Gen Y nurses (48 percent) are not confident they will have enough money to retire, compared to 35 percent of Boomers, the report states. And 76 percent of Gen X nurses are concerned they will never be able to retire, compared to 53 percent of Boomers.
Among the report’s additional findings:
- More than 42 percent of the nurses surveyed experienced a consolidation in the past three years, up from 29 percent in 2011. Of nurses who have been through a consolidation, 37 percent report that the merger has negatively impacted morale, and one-third (33 percent) report there is more stress on the job.
- 39 percent of nurses report having a defined benefit plan, down from 48 percent in 2011. Among boomer nurses, 44 percent have access to a DB plan.
- 19 percent of nurses expect Social Security to be their primary source of retirement income, and the expectation is even lower among younger generations: 8 percent for Gen Y and 16 percent for Gen X.
- 43 percent of nurses report these savings will be their primary source of retirement income.
- 53 percent of nurses feel overwhelmed by retirement planning, and 79 percent want more help. For help with retirement planning, nurses rely on their workplace retirement plan providers, and find the following most helpful: In-person meetings (56 percent), mailed materials (42 percent), telephone consultations (34 percent).