Urgent Care: Nursing Your Retirement Portfolio to Greater Health
from GuideStone Financial Resources
While you’re busy at work addressing the physical and emotional well-being of others, you may run out of time to actually care for yourself. And when it comes to reaching financial goals, such as annual budgeting and retirement planning, carving out time to sit down and self-assess is critical.
According to a recent health care study (1), nurses’ retirement savings are in need of some serious attention, as they are expected to replace only 59 percent of their ending income in retirement — a 26 percentage point gap from the industry-recommended income replacement goal of 85 percent. The study also indicates that the average retirement savings for 11.8 million retirement plan balances in the USA is just $74,600. In most cases, this may be equivalent to one year’s salary.
Report findings also note that nurses are aware of this savings shortfall, as 63 percent indicated a concern regarding whether they would ever be able to fully retire. Meanwhile, four out of five expressed a need for additional help to better prepare for retirement.
Savings shortfalls: A nurse’s perspective
Let’s take a look at potential reasons for this disparity in nurses’ retirement savings:
- Time is of the essence. First and foremost, nurses work long hours and often are simply strapped for time. This results in limited access to outside resources and financial advisors. Though retirement may seem far on your horizon, planning ahead and strategically saving can help you avoid unnecessary stress and financial uncertainty toward the end of your career.
- Seeking guidance is key. Having the right knowledge at your fingertips is vital to creating a long-term financial plan. When it comes to annual savings goals, financial insiders often cite 15–20 percent savings rates as the rule of thumb. Annually increasing your contributions as you can afford to do so is highly encouraged. Did you know that by increasing your annual contributions by 1 percent you can add up to hundreds of dollars to your monthly retirement income?
Based on a monthly investment of $250 and an 8% annual average rate of return. This is a hypothetical example that illustrates the future value of regular monthly investments for different time periods. It is presented for illustrative purposes only and does not reflect actual performance or predict future results of any particular account or investment.Small changes, big benefits
Simply put, the most important change you can make in terms of retirement planning is straightforward: save more. Applying small changes early in your career can result in additional monthly retirement income down the line. Below, GuideStone examines just how advantageous this 1 percent increase can be and how you can take immediate action to boost your future financial landscape.
A 1 percent increase in your retirement savings plan may seem miniscule in size; however, think of it this way: that’s an additional 1 percent in contributed funds generating interest and working toward your bottom line. Making an annual increase until you reach that 15–20 percent goal (or even beyond) goes a long way to making sure you are on the right path to financial security during retirement. An industry projection based on certain assumptions regarding wage increases and rates of return for a 35-year-old earning $60,000 shows that making a 1 percent annual increase (which translates to $50 per month) could result in 200-300 additional dollars in monthly retirement income for life.
A wealth of knowledge
For more information about your retirement benefits, schedule an appointment to meet with one of your local GuideStone representatives for a one-on-one review or access our easy-to-use online investment advice service (GPS: Guided Planning Services®) from the comfort of your home. Our team is here to serve you, provide assistance and connect you with opportunities to help you establish an effective retirement savings plan.
Navigate your way to a financially sound destination
With GuideStone’s GPS: Guided Planning Services®, financial guidance is just a click away. Simply log into your MyGuideStone account to utilize our free investment advice service. Our easy-to-use retirement planning calculator provides a financial snapshot of where you stand, giving feedback to determine if you are on track to meet your retirement savings goals.
GuideStone takes pride in offering top-tier financial advice and convenient services to meet your retirement planning needs. Have further questions? Don’t hesitate to set up an appointment with one of our personal financial advisors by calling 1-888-98-GUIDE (1-888-984-8433).
For additional information regarding financial planning and investment opportunities, visit us today at www.GuideStone.org.