Most physicians worry about retirement savings. You started earning serious money later than other professionals. Medical school and residency delayed your wealth-building years. Now you wonder if you’re saving enough compared to other doctors your age.

The truth is physician retirement savings vary widely by specialty, location, and personal choices. However, clear benchmarks exist to help you gauge your progress. Understanding these numbers helps you adjust your strategy and catch up if needed.

Why Physician Savings Differ from General Population

Physicians face unique financial challenges that make standard retirement advice less relevant. You typically start earning significant income around age 30. Most other professionals begin building wealth at 22. This gives you roughly eight fewer years to accumulate retirement funds.

Student loan debt also impacts your early career savings rate. The average medical school graduate carries over $200,000 in debt. Many physicians spend their first few years focusing on debt repayment rather than retirement savings. This further delays wealth accumulation compared to other high earners.

Your higher income potential does provide advantages. Specialists often earn $300,000 to $500,000 annually at peak earning years. This income allows for aggressive savings rates once debt is managed. However, lifestyle inflation can quickly erode this advantage if you’re not careful.

Physician Retirement Savings Benchmarks by Age

Ages 30-35: The Foundation Years

Most physicians in this age range should target $50,000 to $150,000 in retirement savings. This seems low compared to your eventual needs, but remember you’re just finishing residency or starting practice. A 32-year-old family medicine physician earning $250,000 might have $75,000 saved while aggressively paying down student loans.

Focus on establishing good habits during these years. Contribute enough to your 401(k) to get the full employer match. Open a Roth IRA if your income allows. Even small contributions compound significantly over 30+ years.

Many physicians in this age group prioritize debt repayment over retirement savings. This makes sense for high-interest debt above 6-7%. However, don’t completely neglect retirement accounts, especially if your employer offers matching contributions.

Ages 35-40: The Acceleration Phase

Physicians in this age range should target $200,000 to $500,000 in retirement savings. Your income should be stabilizing, and student loan payments should be more manageable. A 38-year-old emergency medicine physician earning $320,000 might have $350,000 saved across various retirement accounts.

This decade requires aggressive saving. Target 15-20% of your gross income for retirement. Max out your 401(k) contributions at $23,000 annually. If you’re self-employed, consider SEP-IRAs or Solo 401(k)s that allow much higher contribution limits.

Many physicians see significant income increases during these years. Resist lifestyle inflation and direct raises toward retirement savings. A cardiologist who gets a $50,000 raise should save at least half of it rather than upgrading their lifestyle.

Ages 40-45: The Peak Earning Setup

Retirement savings should reach $500,000 to $1.2 million during these years. You’re entering your peak earning potential, and compound growth accelerates your account balances. A 43-year-old orthopedic surgeon earning $450,000 might have $800,000 saved while still managing some remaining student debt.

This age range is critical for retirement success. You have roughly 20-25 years until retirement, and your savings rate significantly impacts your final outcome. Consider increasing contributions as your income grows and debt decreases.

Many physicians start thinking seriously about retirement planning during these years. Consider working with a fee-only financial planner who understands physician-specific challenges. They can help optimize your tax strategies and investment allocation.

Ages 45-50: The Momentum Years

Target retirement savings of $1 million to $2.5 million during this decade. Compound growth becomes more noticeable, and your higher contribution limits help accelerate savings. A 48-year-old radiologist earning $400,000 might have $1.6 million saved across retirement accounts.

Take advantage of catch-up contributions starting at age 50. You can contribute an additional $7,500 to your 401(k) beyond the standard limit. This brings your total possible 401(k) contribution to $30,500 annually.

Review your investment allocation during these years. You still have 15-20 years until retirement, so maintain appropriate stock exposure for growth. However, gradually reducing risk as you approach retirement makes sense.

Ages 50-55: The Pre-Retirement Push

Retirement savings should reach $2 million to $4 million during these years. A 53-year-old anesthesiologist earning $380,000 might have $2.8 million saved. The combination of high income, maximum contributions, and compound growth creates significant momentum.

This is your final push toward retirement readiness. Max out all available retirement accounts. Consider backdoor Roth conversions if your income excludes you from direct Roth IRA contributions. Some physicians begin reducing work hours during these years, making tax-advantaged savings even more important.

Start thinking about retirement withdrawal strategies. The order you withdraw from different account types significantly impacts your tax burden. Consider working with a tax professional to optimize your approach.

Ages 55-60: The Transition Planning

Target retirement savings of $3.5 million to $6 million during these years. A 58-year-old psychiatrist might have $4.2 million saved while beginning to reduce their patient load. Many physicians start transitioning toward retirement during this decade.

Consider your healthcare coverage carefully if you retire before 65. COBRA extends employer coverage for 18 months, but you’ll need alternative coverage until Medicare eligibility. This can cost $1,500 to $2,500 monthly for family coverage.

Some physicians begin taking distributions from retirement accounts at age 59½ without penalty. However, required minimum distributions don’t start until age 73, giving you flexibility in managing taxable income during early retirement years.

Factors That Impact Your Numbers

Your specialty significantly affects your savings potential. Primary care physicians typically earn $200,000 to $300,000 annually, while specialists often earn $350,000 to $600,000. Higher-earning specialists should have proportionally higher retirement savings targets.

Geographic location matters too. Physicians in high-cost areas like San Francisco or New York face higher living expenses but often earn more. However, the higher income doesn’t always offset increased costs, potentially reducing savings rates.

Practice structure affects your retirement savings options. Employed physicians typically have access to 401(k) plans with employer matching. Self-employed physicians can use SEP-IRAs or Solo 401(k)s that allow higher contribution limits but require more planning.

What If You’re Behind?

Many physicians discover they’re behind their savings targets. Don’t panic. You still have options to catch up. First, increase your savings rate immediately. Even an extra 5% of income directed toward retirement makes a significant difference over time.

Consider working a few extra years if you’re significantly behind. Each additional year of high earnings and delayed withdrawals dramatically improves your retirement security. A physician who works until 67 instead of 62 might increase their retirement income by 30-40%.

Reduce expenses to increase your savings rate. Many physicians can cut $20,000 to $50,000 in annual expenses without significantly impacting their quality of life. This money directed toward retirement savings compounds over time.

Investment Strategies for Physicians

Most physicians benefit from simple, diversified investment strategies. Target-date funds automatically adjust your asset allocation as you age. Low-cost index funds provide broad market exposure without high fees that erode returns over time.

Avoid complex investment products that promise high returns. Many physicians fall into this trap, thinking their medical training translates to investment expertise. Stick with proven strategies that have worked for decades.

Consider tax-loss harvesting in taxable accounts to reduce your tax burden. However, don’t let tax considerations override good investment decisions. The goal is building wealth, not minimizing taxes at the expense of returns.

Creating Your Action Plan

Start by calculating your current net worth and retirement savings rate. Compare these numbers to the benchmarks for your age. If you’re behind, determine how much extra you need to save monthly to catch up.

Automate your savings to remove temptation. Set up automatic transfers from your checking account to retirement accounts immediately after each paycheck. This “pay yourself first” approach ensures consistent savings regardless of monthly expenses.

Review and adjust your plan annually. Your income, expenses, and goals change over time. Regular reviews help you stay on track and make necessary adjustments before small problems become big ones.

Understanding physician retirement savings benchmarks helps you evaluate your progress and make informed decisions. While every situation is unique, these guidelines provide a framework for building retirement security. The key is starting early, saving consistently, and taking advantage of your high earning potential while managing the unique challenges physicians face.

This post is for informational purposes only and does not constitute investment advice. Always conduct thorough research and consult with financial professionals before making investment decisions.

About the Author: Dr. BWMD is a practicing physician and parent who writes about the intersection of medicine and personal finance. When not seeing patients or writing about physician finances, he enjoys spending time with his family and teaching the next generation of medical professionals about the importance of financial wellness.