We love our nurses!
Achieving Financial Security
and Early Retirement
Bright Star Nursing Alliance is committed to addressing the inequity nurses face in pensions and retirement benefits compared to other professional careers. Our mission is to ensure nurses have a clear path to financial security and early retirement through smart retirement planning strategies.
At Bright Star Nursing Alliance, we are dedicated to helping all our registered nurses achieve financial security and the ability to retire by the age of 55 or younger. Through strategic planning, we ensure nurses avoid the need to work beyond the age of 55 by providing them with a clear path to a sustainable and prosperous retirement. This presentation outlines the retirement strategy and income projections for RNs, BSNs, and MSNs, factoring in pensions that increase with CPI adjustments and 401(k) funds that grow consistently at 6% annually.
Our Advocacy and Approach
We have diligently lobbied for nurses to receive retirement benefits that mirror those of other professional careers. However, even if your current position does not offer a pension plan, there is a proven formula that can help almost every nurse achieve an annual retirement income of approximately $90,000 after 25 years of service.
Retirement Plan Components
401(k) Contributions
-
Employee Contribution:
$10,000 annually ($833.33/month) -
Employer Match:
6% of annual salary -
Reinvested Tax Savings:
$2,900 annually ($241.67/month)
Investment Growth
-
Assumes a consistent 7% annual return compounded monthly over 30 years.
Pension
-
Based on 50% of the final average salary, adjusted for inflation through the Consumer Price Index (CPI).
Retirement Projections for RNs, BSNs, and MSNs
Details
RN
BSN
MSN
Average Salary
$88,530
$97,282
$145,470
401(k) Balance (30 Years)
$1,851,489
$1,904,875
$2,198,815
Annual 401(k) Withdrawal
$129,604
$133,341
$153,917
Annual Pension
$44,265
$48,641
$72,735
Total Annual Income
$173,869
$181,982
$226,652
Total Monthly Income
$14,489
$15,165
$18,888
Key Points
-
Pensions Adjusted for Inflation:
Pensions grow with the Consumer Price Index (CPI), ensuring nurses maintain their purchasing power during retirement.
-
401(k) Growth:
With a consistent 7% annual return, 401(k) funds grow steadily over 30 years, providing a reliable income source.
-
Sustainable Withdrawals:
Withdrawing 7% annually from the 401(k) allows nurses to maintain their principal balance while enjoying a steady income.
Our Goal
At Bright Star Nurse Alliance, we empower nurses to:
-
Retire by Age 55 or Younger
-
Achieve Financial Security with strong retirement funds
-
Enjoy Inflation-Protected Income through pensions and 401(k) growth
Together, we are building brighter futures for our nurses!
The Retirement Formula for Nurses: A Step by Step Guide
STEP ONE
Target Your Annual Income
Most nurses aim to earn an annual income of $90,000 to $120,000.
STEP TWO
Annual 401(k) Contribution
By contributing $20,000 per year into a 401(k) plan, nurses can accumulate over $1.6 million in their retirement fund after 25 years.
STEP THREE
Compounding Growth
Assuming a conservative 5% annual return, the contributions will grow significantly over time:
25 Years × $20,000 Contributions + Compounded Interest = $1.6 Million
STEP FOUR
Retirement Income
With a $1.6 million fund, nurses can expect to receive $80,000 annually from their 401(k) in retirement payments.
Our Advocacy and Approach
We have diligently lobbied for nurses to receive retirement benefits that mirror those of other professional careers. However, even if your current position does not offer a pension plan, there is a proven formula that can help almost every nurse achieve an annual retirement income of approximately $90,000 or more after 25 years of service.
Register to Receive Our Retirement Plan
Request more information on our retirement plan for nurses, through the Join Us page.