Travel Nurse Retirement Planning After 8+ Years

Introduction: The Decisions That Define Your Next Chapter

Eight or more years of travel nursing puts you in rare company. You have navigated the financial complexity of multi-state taxes, non-taxable stipends, variable income, and constant relocation — and you have done it long enough to accumulate real wealth if you played your cards right. Or, if the financial discipline came later in your career, you have at least built a substantial runway toward financial security.

Either way, you are now facing a different set of questions than the ones that occupied your early years. The question is no longer “How do I save money?” but rather “What do I do with what I have built?” The question is no longer “How do I maximize my next contract?” but “How much longer do I need to — or want to — keep doing this?”

This guide addresses the financial decisions that veteran travel nurses face: whether to continue traveling, transition to staff, or pursue early retirement. How Social Security works (and does not work) for travel nurses. How to ensure healthcare coverage in retirement. How to shift your portfolio from growth to income. How to draw down your savings without running out of money. And how to think about legacy — what you leave behind.

These are consequential decisions with long-term implications. Take them seriously, and consider working with a fee-only financial advisor who can model your specific numbers.

Disclaimer: This guide is for educational purposes only and does not constitute financial, tax, or legal advice. Consult qualified professionals for guidance on your specific situation.

The Transition Decision: Continue, Go Staff, or Retire

The first and most fundamental question is: what comes next?

Option 1: Continue Travel Nursing

The case for staying on the road. If you enjoy traveling, your health supports it, and the money is still good, there is no arbitrary reason to stop. Some nurses travel well into their 50s and 60s. The financial advantages of travel nursing — higher pay, non-taxable stipends, geographic flexibility — do not diminish with experience. In fact, experienced travelers often command premium rates and have their pick of assignments.

Financial considerations for continued travel: Continue maxing retirement accounts. Shift investment allocation gradually toward more conservative holdings as you approach your target retirement date. Maintain your tax home meticulously — the longer you travel, the more important your documentation becomes if the IRS ever reviews your returns. And begin thinking about your eventual transition plan even if retirement is years away.

The burnout factor. Be honest with yourself about whether the lifestyle is still sustainable. Travel nursing burnout is real, and it tends to be cumulative. If you are accepting contracts purely for the money and dreading every new orientation, the diminishing returns on your wellbeing may outweigh the financial benefits.

Option 2: Transition to Staff Nursing

The case for going staff. Stability, consistent benefits, a single location, deeper professional relationships, and potentially reduced stress. Many veteran travelers find that a well-chosen staff position at a hospital they discovered through travel nursing offers the best of both worlds — the location and facility they love, without the constant upheaval.

Financial implications:

Income reduction. Expect your total compensation to drop 25% to 40% compared to travel nursing. The exact difference depends on your specialty, location, and the staff position’s pay scale.
Benefit gain. Staff positions typically include employer-sponsored health insurance (often with employer contributions), retirement plans with matching, paid time off, disability insurance, and tuition reimbursement. These benefits have real financial value — often $15,000 to $30,000 per year when fully calculated.
Tax simplification. One employer, one state, no stipend compliance issues. Your tax filing becomes dramatically simpler.
Budget adjustment. You will need to resize your budget and savings targets to match the lower income. If your travel nursing savings rate was 30% on $120,000, you may need to reduce it to 20% on $80,000 while still maintaining your financial trajectory.

The hybrid approach. Some veteran nurses transition to staff but pick up travel contracts during high-demand seasons (holidays, summer) for supplemental income. Others go per diem at their local hospital while taking occasional travel assignments. This hybrid model offers stability with the option to boost income when desired.

Option 3: Retire (Traditional or Early)

Traditional retirement (age 62-67). If you have been maxing retirement accounts for eight or more years, you may be on track for a traditional retirement in your 60s. The question is whether your portfolio and Social Security benefits will sustain your desired lifestyle.

Early retirement (before age 59.5). For aggressive savers, early retirement — sometimes called Financial Independence, Retire Early (FIRE) — may be achievable. A travel nurse who saved $50,000 per year for 10 years, invested in index funds averaging 7% returns, would have approximately $690,000. That is not “retire to a beach house” money for most people, but combined with a low-cost lifestyle, it could support early retirement or a transition to part-time work on your own terms.

The math of early retirement: To retire early, you need enough invested assets to cover your annual expenses indefinitely. The standard guideline is the 4% rule: you can withdraw 4% of your portfolio each year and have a high probability of the money lasting 30+ years. A $1 million portfolio supports $40,000 per year in withdrawals. A $1.5 million portfolio supports $60,000. Calculate your annual expenses, multiply by 25, and that is your target number.

Social Security is a significant piece of the retirement puzzle, but it works differently for travel nurses than for traditional employees. Understanding it now allows you to make better decisions.

How Benefits Are Calculated

Social Security benefits are based on your highest 35 years of earnings. The Social Security Administration (SSA) adjusts your earnings for inflation, takes the 35 highest-earning years, and calculates your Average Indexed Monthly Earnings (AIME). Your benefit amount is then determined by a formula that provides higher replacement rates for lower earners and lower replacement rates for higher earners.

Key point for travel nurses: Only your taxable wages count toward Social Security earnings. Your non-taxable stipends (housing, meals, incidentals) do not contribute to your Social Security earnings record. This means your Social Security benefit will be calculated based on a lower income than your total compensation, which could result in a smaller benefit than you might expect.

Example: A travel nurse earning $110,000 in total compensation with $70,000 in taxable wages and $40,000 in non-taxable stipends will have only $70,000 counted toward their Social Security earnings for that year. A staff nurse earning $90,000 (all taxable) would actually have a higher Social Security earnings credit for that year.

Checking Your Earnings Record

Create an account at ssa.gov and review your Social Security Statement. It shows your earnings record by year and provides an estimate of your future benefits at ages 62, 67 (full retirement age for most current nurses), and 70.

Look for gaps. Years with low or zero earnings reduce your benefit calculation. If you have years with $0 earnings (perhaps while in nursing school or during extended breaks), those zeros are averaged into your 35-year calculation and lower your benefit.

Look for accuracy. Verify that your taxable wages for each year match your W-2s. If an agency failed to report your earnings correctly, your Social Security record could be understated. You can correct errors by contacting the SSA with supporting documentation (W-2s, tax returns).

When to Claim

Age 62: Earliest you can claim. Benefits are permanently reduced by approximately 30% compared to your full retirement age benefit.

Full Retirement Age (FRA, typically age 67): You receive your full calculated benefit.

Age 70: Benefits increase by approximately 8% per year for every year you delay past FRA, up to age 70. A benefit of $2,500/month at FRA becomes approximately $3,100/month at age 70.

The strategic consideration: If you have substantial savings and investment income, delaying Social Security to age 70 maximizes your guaranteed lifetime income. Social Security is essentially a longevity insurance policy — the longer you live, the more valuable it becomes. If you retire early (before 62), you will need to bridge the gap with personal savings until Social Security begins.

Spousal Benefits

If you are married, you may be eligible for spousal benefits (up to 50% of your spouse’s benefit) if they exceed your own earned benefit. This can be particularly relevant if your non-taxable stipend income resulted in a lower personal Social Security benefit. Spousal benefit strategies are complex — consult a financial advisor or use the SSA’s benefit calculators.

Healthcare in Retirement

Healthcare is the single largest expense concern for retirees, especially for those who retire before Medicare eligibility at age 65. For travel nurses accustomed to agency coverage or ACA marketplace plans, the transition requires careful planning.

Before Age 65: Bridging to Medicare

If you retire or go part-time before age 65, you need a healthcare strategy for the gap years.

ACA Marketplace. This is the primary option for most early retirees. In retirement, your income (which determines subsidy eligibility) may be significantly lower than during your working years, qualifying you for substantial premium tax credits. A travel nurse who retires at 55 with $50,000 in annual investment income (and no earned income) could qualify for generous marketplace subsidies.

Strategic Roth conversions and income management. In retirement, you control your taxable income more than during your working years. By carefully managing how much you withdraw from different account types (Roth withdrawals are not taxable and do not count toward ACA income), you can optimize your ACA subsidy eligibility. This is one of the most sophisticated and valuable retirement planning strategies available.

COBRA. If you transition from a staff position (after leaving travel nursing), COBRA provides 18 months of continued employer coverage. It is expensive (you pay the full premium), but it provides a bridge while you set up marketplace coverage.

Health care sharing ministries and short-term plans. These can serve as temporary bridges but are not comprehensive coverage. They should not be your primary plan for a multi-year pre-Medicare period. See our health insurance guide for a full comparison of options.

Medicare at Age 65

Medicare eligibility begins at age 65. Most people are eligible for premium-free Part A (hospital coverage) if they have 40 quarters (10 years) of Medicare-taxed employment. Travel nurses who have worked for eight or more years will almost certainly qualify.

Medicare Parts:

Part A: Hospital insurance. Premium-free for most people. Covers inpatient hospital stays, skilled nursing facilities, and hospice.
Part B: Medical insurance. Covers doctor visits, outpatient care, and preventive services. Monthly premium of approximately $185 in 2026 (higher for high-income individuals).
Part D: Prescription drug coverage. Separate plan you purchase. Premiums vary.
Medigap (Medicare Supplement): Private insurance that covers gaps in Medicare coverage (deductibles, copays, coinsurance). Monthly premiums vary by plan type and location.
Medicare Advantage (Part C): An alternative to Original Medicare that bundles Parts A, B, and often D into a single plan run by a private insurer. May include additional benefits but restricts you to a network.

HSA strategy for Medicare: Once you enroll in Medicare, you can no longer contribute to an HSA. However, you can withdraw existing HSA funds tax-free for qualified medical expenses (including Medicare premiums, deductibles, and copays). If you have been building your HSA throughout your career, it becomes a powerful tool for covering healthcare costs in retirement. See our HSA guide.

Portfolio Drawdown Strategies

How you withdraw money from your retirement accounts is as important as how you saved it. The wrong drawdown strategy can result in unnecessary taxes, premature account depletion, or missed optimization opportunities.

The Bucket Strategy

Divide your retirement assets into three buckets based on when you will need them.

Bucket 1: Short-term (0-3 years of expenses). Cash and cash equivalents: high-yield savings accounts, money market funds, short-term CDs. This bucket covers your immediate living expenses and provides a buffer against market downturns. If the stock market drops 30%, you draw from Bucket 1 instead of selling stocks at depressed prices.

Bucket 2: Medium-term (3-10 years of expenses). Conservative investments: bonds, bond funds, balanced funds. This bucket replenishes Bucket 1 as it is depleted and provides growth with moderate risk.

Bucket 3: Long-term (10+ years of expenses). Growth investments: stock index funds. This bucket is not touched for at least a decade, giving it time to recover from any market downturns and continue growing.

The 4% Rule (and Its Limitations)

The 4% rule suggests that withdrawing 4% of your portfolio in the first year of retirement, then adjusting that amount for inflation each subsequent year, gives you a high probability (roughly 95%) of your money lasting at least 30 years.

On a $1 million portfolio: Withdraw $40,000 in Year 1 ($3,333/month). In Year 2, if inflation is 3%, withdraw $41,200. And so on.

Limitations: The 4% rule was developed using historical U.S. market data and assumes a 50/50 stock-bond allocation. It does not account for sequence-of-returns risk (poor market returns in the first few years of retirement are more damaging than poor returns later), changes in tax policy, or individual spending patterns. Many financial advisors now recommend a more flexible withdrawal rate of 3.5% to 4.5%, adjusted based on market conditions.

Tax-Efficient Withdrawal Order

The order in which you withdraw from different account types significantly affects your tax bill.

General guideline: In early retirement (before Social Security begins), withdraw from taxable brokerage accounts first (capital gains are often taxed at lower rates than ordinary income), then from tax-deferred accounts (Traditional IRA, 401(k)), and last from Roth accounts (which grow tax-free and have no required minimum distributions).

Roth conversion opportunity: In the early retirement years, when your income is low (before Social Security and before required minimum distributions from Traditional accounts begin), you have an opportunity to convert Traditional IRA funds to Roth at low tax rates. This is called a “Roth conversion ladder” and can save substantial taxes over your lifetime.

Example: You retire at 55 with $500,000 in a Traditional IRA and $300,000 in a Roth IRA. Your annual expenses are $50,000. In years 1-7 (before Social Security at 62), you live on Roth withdrawals and taxable account income while converting $30,000 to $40,000 per year from Traditional to Roth. At a 12% tax rate on conversions (filling up the low brackets), you pay $3,600 to $4,800 per year in conversion taxes but save far more by avoiding higher tax rates when Required Minimum Distributions (RMDs) kick in at age 73.

This strategy is complex and benefits enormously from professional guidance. A fee-only financial advisor can model the optimal conversion amounts based on your specific accounts, expected Social Security benefit, and tax situation.

Portfolio Allocation Shifts

Your investment allocation should evolve as you move from accumulation (building wealth) to distribution (spending wealth).

The Glide Path

During working years (accumulation): Higher stock allocation (70% to 90% stocks, 10% to 30% bonds). You have decades for recovery from market downturns, and stocks provide the best long-term growth.

Approaching retirement (5-10 years before): Gradually shift toward a more balanced allocation (60% stocks, 40% bonds). This reduces portfolio volatility so that a market crash right before retirement does not devastate your savings.

In retirement (distribution): A common allocation is 50% to 60% stocks and 40% to 50% bonds, though this varies based on your risk tolerance, income sources (Social Security, rental income, pensions), and time horizon. Even in retirement, you need stock exposure for growth — a 30-year retirement means your money needs to keep growing to outpace inflation.

Asset Allocation by Account Type

Tax-deferred accounts (Traditional IRA, 401(k)): Hold bonds and bond funds here. Interest income from bonds is taxed as ordinary income, so sheltering it in tax-deferred accounts makes sense.

Roth accounts: Hold your highest-growth investments (stock index funds). Since Roth growth and withdrawals are tax-free, maximizing growth in these accounts provides the greatest tax benefit.

Taxable brokerage: Hold tax-efficient stock index funds (which generate minimal taxable distributions). Avoid holding bonds or high-dividend funds in taxable accounts due to the annual tax drag.

For investment fundamentals, see our investing guide and retirement plan overview.

Legacy Planning

Legacy planning is not just for the wealthy. If you have retirement accounts, property, life insurance, or dependents, you need a basic estate plan.

Essential Documents

Will. Specifies how your assets are distributed after your death and names a guardian for minor children. Without a will, state law determines who gets your assets, which may not align with your wishes.

Durable Power of Attorney. Designates someone to make financial decisions on your behalf if you become incapacitated. As a healthcare professional, you understand better than most how quickly this can become necessary.

Healthcare Power of Attorney / Healthcare Proxy. Designates someone to make medical decisions for you if you cannot make them yourself.

Living Will / Advance Directive. Documents your wishes regarding end-of-life medical care.

Beneficiary Designations. Review and update beneficiaries on all retirement accounts (IRAs, 401(k)s), life insurance policies, and bank accounts. Beneficiary designations override your will, so keeping them current is essential. This is especially important for travel nurses who may have changed marital status or family situations over their career.

Trust Considerations

For travel nurses with significant assets (generally $500,000+ in investable assets, or real estate in multiple states), a revocable living trust can simplify the transfer of assets after death by avoiding probate. Probate is a public, court-supervised process that can be time-consuming and expensive, especially when you own property in multiple states. A trust keeps the transfer private and efficient.

An estate planning attorney can draft these documents for $1,500 to $3,000 for a basic estate plan. It is one of the best investments you can make for your family’s security.

Charitable Giving in Retirement

If charitable giving is important to you, retirement offers tax-efficient giving strategies:

Qualified Charitable Distributions (QCDs). After age 70.5, you can donate up to $105,000 per year directly from your Traditional IRA to a qualified charity. The donation counts toward your Required Minimum Distribution but is not included in your taxable income. This is one of the most tax-efficient ways to give.

Donor-Advised Fund (DAF). A DAF lets you make a charitable contribution, receive an immediate tax deduction, and then distribute the funds to charities over time. You can “bunch” multiple years of charitable giving into a single year for a larger deduction, then distribute from the DAF in subsequent years.

FAQ

How do I know if I have enough to retire?

The simplest test: multiply your expected annual retirement expenses by 25. If your investment portfolio (excluding Social Security) equals or exceeds that number, you are in the zone. For example, if you need $60,000 per year, your target portfolio is $1.5 million. Add expected Social Security benefits to your calculation — if Social Security covers $24,000 per year, you only need your portfolio to cover the remaining $36,000, which requires $900,000 (36,000 x 25). A fee-only financial advisor can run a more detailed Monte Carlo simulation that accounts for variable returns, inflation, taxes, and your specific situation.

Yes, potentially. Social Security benefits are calculated based on your taxable wages (Box 1 of your W-2), not your total compensation. Non-taxable stipends do not contribute to your Social Security earnings record. A travel nurse earning $70,000 in taxable wages and $40,000 in non-taxable stipends will have Social Security benefits calculated on the $70,000, not $110,000. Over a career, this could result in a meaningfully lower monthly benefit compared to a staff nurse with the same total income but entirely taxable wages. This is one reason why building robust personal retirement savings is especially important for travel nurses.

What healthcare options do I have if I retire before 65?

Your primary option is an ACA marketplace plan. In retirement, your income is likely lower than during working years (especially if you strategically manage withdrawals), which can qualify you for premium tax credits that significantly reduce your monthly premiums. Roth IRA withdrawals do not count as income for ACA subsidy purposes, making them ideal for funding early retirement living expenses while keeping your official MAGI low for subsidy eligibility. Other options include COBRA (if transitioning from a staff position), a spouse’s employer plan, or health care sharing ministries, though marketplace plans are generally the most comprehensive and cost-effective option for early retirees.

Should I consider long-term care insurance?

Long-term care insurance covers costs that Medicare does not: extended nursing home stays, assisted living, and in-home care. The average cost of a private room in a nursing home exceeds $100,000 per year. If you do not have sufficient assets to self-insure this risk (generally $1 million+ in liquid assets), long-term care insurance is worth considering. The ideal time to purchase it is in your mid-50s to early 60s — premiums are more affordable, and you are less likely to be declined for health reasons. Hybrid policies that combine life insurance with long-term care coverage have become popular alternatives to standalone LTC policies.

How should I handle Required Minimum Distributions (RMDs)?

RMDs begin at age 73 for most current retirees (this age may change with future legislation). Each year, you must withdraw a calculated minimum amount from your Traditional IRA and 401(k) accounts, and that withdrawal is taxed as ordinary income. Roth IRAs do not have RMDs during your lifetime. To minimize the tax impact of RMDs, consider Roth conversions in the years before RMDs begin (when your income and tax rate may be lower). Converting Traditional IRA funds to Roth reduces your future RMD amounts and shifts money into tax-free growth. Your CPA or financial advisor can calculate the optimal conversion amounts each year.

Key Takeaways

Face the transition decision honestly. Whether you continue traveling, go staff, or retire depends on your financial position, health, lifestyle preferences, and burnout level. Run the numbers for each scenario and choose what aligns with your values and goals.
Understand Social Security’s limitations for travel nurses. Your non-taxable stipends do not contribute to your Social Security earnings record, potentially resulting in lower benefits. Compensate by building robust personal retirement savings.
Plan for healthcare in early retirement. ACA marketplace plans with premium tax credits are the primary option for retirees under 65. Manage your taxable income strategically (using Roth withdrawals) to maximize subsidy eligibility.
Implement a tax-efficient drawdown strategy. Use the bucket approach (short-term cash, medium-term bonds, long-term stocks) and withdraw from accounts in the order that minimizes lifetime taxes. Pursue Roth conversions in low-income years before RMDs begin.
Shift your portfolio gradually from growth-oriented to balanced as you approach and enter retirement. Maintain stock exposure for growth even in retirement — a 30-year retirement requires your portfolio to outpace inflation.
Complete your estate plan. Will, powers of attorney, healthcare directives, and beneficiary designations are non-negotiable. Consider a trust if you have significant assets or property in multiple states.
Consult professionals. The decisions in this guide have long-term consequences and involve complex interactions between taxes, investments, insurance, and estate law. A fee-only financial advisor and an estate planning attorney are worth the investment at this stage of your financial life.

Eight or more years of travel nursing has given you the income, the experience, and (hopefully) the savings to write the next chapter on your own terms. Whether that chapter involves more travel, a staff position in your favorite city, early retirement, or something else entirely, the financial foundation you have built supports it. Plan carefully, execute deliberately, and enjoy the freedom that financial security provides.

Affiliate Placement Notes

Fee-only financial advisor referral links throughout (especially in drawdown strategy and Social Security sections)
Investment platform links in the portfolio allocation section
Insurance product links in the healthcare and long-term care sections
Estate planning service links in the legacy planning section
Retirement income calculator tool links where applicable