For nurses 10–15 years out: how much to save with a pension at Midflorida Credit Union

How much does a pension cut your savings target?

Cedric first ran this math at 53, 12 years before he expected to leave the hospital. Subtract your yearly pension and Social Security estimate from yearly spending, then multiply the remaining gap by 25. For a nurse spending $60K annually with an estimated $28K from Social Security, a $12K pension leaves a $20K gap and a $500K target; a $24K pension leaves an $8K gap and a $200K target.

A pension changes what the 403(b) is for, and the target moves with it. If pension plus Social Security pay 100% of spending, the 403(b) becomes a cushion for a roof, a car, or help for family. If those 2 income sources cover under half, the 403(b) has to carry most of your retirement paycheck.

First, ask your plan administrator for a projection at your intended retirement age in today's dollars and ask if it includes a cost-of-living raise. Then get your estimate from the SSA my Social Security account. Write down one spending number. Last, compare 25 times the gap with your current 403(b) balance grown at an assumed 5% a year, for illustration. Midflorida Credit Union puts those 2 numbers beside each other on a one-page roadmap before suggesting a contribution change.

Option 1: max the 403(b) every year

Cedric, a sonographer at 53, expected an $18K pension and $28K annually from Social Security against $60K of spending (hypothetical, round numbers). His $14K yearly gap meant a $350K target by 65. His $150K 403(b), assuming 5% a year for illustration, would grow to about $269K in 12 years: $150K × 1.796. That left an $81K shortfall.

At 55, Cedric inherited $100K. At the same assumed 5% for 10 years, that money could grow to about $163K: $100K × 1.629. The inheritance covered the projected shortfall twice, so he had room to decide whether every later dollar belonged in the traditional 403(b). A calculator on this site can run the same gap and growth math with your numbers.

The IRS employee limit for 2026 is $24,500 for a 403(b). At 50 or older, the $8,000 catch-up makes the total $32,500. At ages 60–63, the higher catch-up is $11,250, for a $35,750 total. Saving about $30K annually for 12 years at an assumed 5% grows to roughly $477K, using a factor of about 15.9.

Cedric kept maxing and arrived at 66 with roughly $750K, all pre-tax. Because he was born in 1960, the IRS says his RMDs, required minimum distributions, start at 75. He now weighs Roth conversions of about $40K annually; that choice belongs in a separate Roth conversion strategy discussion. An investment account can finish below the amount put into it, especially if stocks fall during the last few years before retirement.

The inheritance changed the target

Catch-up dollars have their own clock

Options 2 and 3: Roth after the gap, or stop at the match

Cedric's extra savings made Option 2 sensible after his gap was covered: send later dollars to a Roth 403(b) or Roth IRA, where qualified payments are tax free. The IRS IRA limit for 2026 is $7,500, or $8,600 at 50 or older, and the Roth IRA income phase-out is $153K–$168K for a single filer. A nurse whose prior-year FICA wages exceeded $150K has no choice on catch-ups: the IRS treats them as Roth dollars. Option 3 means taking the full employer match, then using the rest for a mortgage or an adult child; it fits a nurse whose pension and Social Security cover about 90% of spending.

What age turns catch-up years into real money?

Cedric could have started catch-ups at 50, not waited for 60. Starting at 60 adds $11,250 for 4 years, or $45K before growth. Starting at 50 adds $8,000 for 10 years, or $80K before growth, plus more years for that money to compound.

Cutting contributions at 50 can also be premature. A pension estimate may assume 15 more years at the same hospital, and a nurse who leaves before vesting may receive little or nothing. A pension without a cost-of-living raise also fades in buying power: $18K becomes about $13.4K after 10 years at assumed 3% inflation, calculated as $18K ÷ 1.344. Treat a frozen pension, uncertain vesting, or no pension as a smaller number, sometimes zero.

Maxing a traditional 403(b) after the gap is covered can pile up pre-tax money that later RMDs and the tax bill will reach. Cedric has that issue now. A payroll contribution election can usually change through the benefits portal for a later paycheck. A Roth conversion cannot be undone once completed. The pension payout election at retirement is usually final, so settle the savings target 1–2 years before that form is due.

A 403(b) beneficiary form that still names a late spouse and no contingent beneficiary can send the account through the estate. If Cedric died before RMDs at 75, his children could face a 5-year payout, about $150K annually of taxable income on $750K, rather than a 10-year payout of about $75K annually, plus probate delay. One new beneficiary form filed with the plan administrator fixes it, but only while he is alive.

The pension estimate can overstate security

Changes you can still make

The Midflorida Credit Union review: math you can do, choices to discuss

Cedric could do the gap formula in 20 minutes with 2 statements and a calculator. Choosing where the next dollar goes, and whether an inheritance changes that choice, depends on pension terms, tax bracket, and RMD age. Midflorida Credit Union covers those details in a review and records the answer on 1 page; the 25× result is a floor, not a finish line, for anyone retiring before 60 or unsure of pension vesting.