40+ statistics on physician retirement (2024)

FAQs

What is the average retirement account for a physician? ›

On average, men stated that $4.1 million would provide a comfortable retirement, with women stating $3.6 million. Overall, the average for physicians was $3.9 million. At these levels, physicians have typically funded about 77% of their desired amount.

Did you know most physicians retire after age 65? According to 2021 data from the Center for Retirement Research at Boston College, the average retirement age for men is 65, and for women, it is 62. Based on survey data from the AMA Insurance Agency Inc., 58% of physicians retire after age 65.

Twenty-eight percent of physicians have a net worth ranging between $2 million and $4.9 million in 2024, according to Medscape's 2024 "Physician Wealth & Debt Report," published June 12. An additional 25% of physicians have a net worth of less than $500,000, while 21% are worth $1 million to $1.9 million.

A cadre of 625 respondents met the criteria of being retired and living; the mean age of PA retirement was 61 years (range 47-75 years). Duration of a PA career was 29 years on average (range, 10-40 years). Forty-three percent of respondents retired from family/general medicine and 11% from emergency medicine.

When looking at retirement plans for doctors, the 457(b) can be attractive for people who do a good job saving for retirement and are positioned to retire early. The major downside to 457(b) plans is the money isn't as highly protected as other qualified retirement accounts.

Results: Among both U.S. white and black men, physicians were, on average, older when they died, (73.0 years for white and 68.7 for black) than were lawyers (72.3 and 62.0), all examined professionals (70.9 and 65.3), and all men (70.3 and 63.6).

As for the financial aspects of retirement, physicians have some unique challenges in that department as well. First of all, saving for retirement early in their careers can be difficult because of the large student debts most physicians carry out of medical school and residency.

While there is nothing to stop you from starting medical school at 30, 40, or 50 years of age, there are some important factors to consider: Length of educational process – Medical school is typically four years, but residency is another three to eight years.

More than 25 percent of physicians in 2017 earned above $425,000 annually and the top 1 percent of physicians averaged $4 million in annual earnings — 10 times the average annual earnings in the sample and more than twice the average earnings in the top 5 percent.

How many doctors retire as millionaires? ›

By the time doctors reach their sixties, and beyond, they may be looking towards retirement. While 60% of physicians can retire with a net worth between $1 and $5 million, 25% of doctors still have a substantially lower net worth.

Doctors in the top 10 percent averaged $1.3 million. And those in the top 1 percent averaged an astounding $4 million, though most of that (85 percent) came from business income or capital gains.

Additionally, despite being ranked 10 as a whole, Pennsylvania ranked number two when ranked for quality of life, with Florida taking that top spot. “Being retired brings freedom, but it also naturally is a time of financial constraint, with many seniors living on a fixed income.

Pennsylvania is very tax-friendly towards retirees. Some of the retirement tax benefits of Pennsylvania include: Retirement income is not taxable: Payments from retirement accounts like 401(k)s and IRAs are tax exempt. PA also does not tax income from pensions for residents aged 60 and over.

Job Outlook

Employment of physician assistants is projected to grow 27 percent from 2022 to 2032, much faster than the average for all occupations. About 12,200 openings for physician assistants are projected each year, on average, over the decade.

Key takeaways

Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement. If you're behind, don't fret.

According to Fidelity Investments' 2022 Retiree Healthcare Cost Estimate, the average American couple estimates the total cost of healthcare in retirement to be $41,000; however, in actuality, the average 65-year-old couple retiring this year can expect to spend an average of $315,000 on healthcare expenses throughout ...

The average retirement savings for all families is $333,940, according to the 2022 Survey of Consumer Finances. The median retirement savings for all families is $87,000.

Lisha's rule is that physicians should invest 20% of their gross income. If you're in primary care or internal medicine, and/or your starting gross income is in the $240k range, 20% is the starting point.