With long work shifts and the constant demands of their profession, nurses often put personal matters on the back burner, and that includes financial planning, according to a Fidelity Investments study.
The study found that more than half of nurses surveyed (56 percent) say they lack confidence in making financial decisions — and four in 10 (41 percent) attribute this to the fact they don't have enough time to focus on them.
The online survey was conducted between Oct. 6 and Oct. 30, 2014, among 356 nurses (registered nurses, advanced registered nurses, licensed practical nurses, nursing management, certified registered nurses and certified nurse anesthetists) ages 18 and older who are employed or retired and have a qualifying retirement plan.
Here are six other findings.
1. A majority of nurses (92 percent) say they want to learn more about financial planning, but continue to struggle to find the time.
2. Although 56 percent of nurses say they lack financial confidence, the study suggests many nurses are taking positive steps with their money. For instance, 84 percent of nurses are proactively saving for the future. Also, an analysis of Fidelity business data examining the retirement savings behaviors of more than 38,000 nurses supports this finding, showing nurses are diligent savers with a total savings rate (employer plus employee contribution to a workplace savings plan) of 12 percent — close to matching Fidelity's suggested rate of 15 percent.
3. More than two-thirds (67 percent) of nurses are making smart choices with how they invest their money and have an age-based asset allocation, the study shows. Fidelity said these behaviors provide a strong financial foundation, but there's still opportunity for nurses to further boost their retirement savings.
4. A majority (62 percent) of nurses who have access to retirement guidance at work don't take advantage.The biggest reason was lack of time.
5. Still, the study finds that 85 percent of nurses who don't take advantage of retirement guidance at work would be motivated to do so if they were given options that enhanced accessibility. For instance, four in 10 (41 percent) of these nurses would be motivated to take advantage of retirement guidance in the workplace if their employer offered a class during work hours or had experts available to guide them through retirement plan options, either in person or on the phone, according to Fidelity.
6. Therefore, Fidelity said, adjusting workplace retirement guidance based on employee needs can be a powerful way to help nurses better understand their financial plan, and encourage them to get engaged. Fidelity data shows that 35 percent of nurses take action following guidance. Of those nurses, 69 percent of nurses increased their retirement savings contribution within 90 days of completing a guidance interaction by phone, in person or online.
For more information and to access retirement planning tools, a Caring for Nurses' Finances webinar and other financial education materials from Fidelity, click here.
More articles on workforce and labor management:
Maryland adopts nurse practitioner full-practice authority law: 3 things to know
Nurses to strike at Salinas Valley Memorial Hospital
Union continues efforts despite Tufts, Boston Medical Center merger fallout: 3 things to know