[quote=AN]BG and Essbee, of course if you only contribute 3% into your 401A, then their match would seem big. For a typical RN ($70k/yr), you’re talking about $2100/year. No wonder savings rate is so horrible. If you actually max out your 401A + 403B, then it would be 81% employee and 19% Scripps. So, yes, you’re right, if you’re a low achieving saver, then the company contribute a HUGE amount. But if you are actually a rabid saver, then it’s not that big. Also, that only for you if you work there 20+ years. For the first 9 years, you only get 1/2 of that. For those who work their the first 9 years, it’s 90.5% employee and 9.5% Scripps (if you’re actually a saver).[/quote]
Whatever percentage it is, AN . . . it’s “free money, compounded.”
It’s kind of hard to be a “rabid saver” if one only works one day per week (or less).
If you or your spouse had a retirement plan where an employer matches your funds in ANY amount, this would GREATLY assist you in inching closer to your $5M retirement goal.
But I’m still not sure if you will be able to achieve your financial goals by age 50. That seems a bit over-the-top grand, to me.
The VA Hospital has a defined benefit plan in combination with TSP. It’s truly a win, win for their (civil-service) employees.
These plans are wonderful for those employees who can save at least the maximum matchable amount towards their retirement fund out of every paycheck 🙂
