Physician Retirement: Prepare Now So You Can Step Away When Burnout Strikes
By Jared Andreoli, CFP®, CSLP®
Burnout among physicians is reaching alarming levels. In 2022, two out of every five physicians retired early or left their medical group due to overwhelming stress, according to a poll by the Medical Group Management Association. Some studies suggest this number could be even higher, with The Century Foundation reporting that nearly 50% of physicians cite burnout as a primary driver of early retirement.
If you're a practicing physician, you’ve likely felt the weight of your demanding career. And while stepping away might not be on your radar now, the reality is that physician burnout can force even the most dedicated professionals to reconsider their path. The bigger question is: Are you financially prepared for retirement when that time comes—expected or not?
At Simplicity Financial, we understand the unique challenges physicians face, from balancing high-income potential with significant student debt to planning for an uncertain future. Our mission is to empower you with the confidence and clarity to prepare for retirement on your terms.
This guide will help you take the first steps toward crafting a retirement plan that supports your vision for the future—whether that future is decades away or closer than you think.
Why You Should Be Planning Your Physician Retirement
Practicing physicians often earn mid-six-figure salaries, depending on their specialty. Some may have an income of $1 million a year or more. However, they’re also likely to owe student loans that run six figures, have high taxes, and face a tremendous amount of daily stress caring for patients.
Beginning financial planning early in your career can help you focus on your patients, knowing you have a plan to pay off your loans, take care of your bills, and set aside and invest money for the day you decide to stop practicing medicine.
You can start with the simple budget rule of 50/30/20, a straightforward way of dividing your after-tax income to cover your needs, wants, and savings. Half of your income pays for your necessary expenses (e.g., food, rent or mortgage, car, student loan), 30% goes toward things you want but aren’t necessities, and the remaining 20% gets saved.
Tips to Start Planning for Your Physician Retirement
You probably didn’t go to medical school with the notion of retiring early, but early retirement from burnout has been identified as a professional hazard. Knowing this, it’s wise to plan your physician retirement as early as possible. If you need your retirement money early, it’ll be there; if you don’t, you’ll have even more later on when you decide to step away.
Here are some tips to get your physician retirement planning underway:
Establish an emergency fund: Set aside three to six months’ worth of household expenses to create a safety net for unexpected situations.
Pay down student loans: Reducing or eliminating student loan debt can free up resources for retirement savings.
Define your retirement vision: Think about how you want to spend your retirement—whether it’s traveling, volunteering, or exploring new hobbies.
Estimate your savings needs: Consider how much you’ll need to save to support your desired retirement lifestyle, factoring in healthcare costs and inflation.
Save and invest strategically: Maximize contributions to retirement accounts like 401(k)s, IRAs, 403(b)s, or SEP IRAs, and explore other investment opportunities to grow your wealth over time.
Work with a financial advisor: An experienced professional can provide guidance tailored to the unique financial challenges and opportunities of a physician’s career.
A financial advisory firm like Simplicity Financial can guide your comprehensive financial planning and help you develop a retirement plan that prepares you for the day you decide to leave your practice. You can take comfort in knowing you have a plan just in case retirement comes sooner than you expect.
Find a Financial Advisor for Your Retirement Planning
Planning for retirement is about more than finances—it’s about creating the freedom to step into the next phase of life with confidence and clarity. For physicians, who dedicate their lives to caring for others, taking the time to plan for your future is an act of self-care and long-term well-being.
Whether you’re decades away from leaving your practice or considering your options sooner, having a thoughtful retirement plan can help you navigate the unique financial challenges of your profession. From tackling student loans to maximizing investment opportunities, every step you take now brings you closer to building the lifestyle you envision for your retirement.
At Simplicity Financial, we specialize in working with physicians to craft personalized financial strategies that align with their goals and values. Ready to take the first step? Get started by scheduling a free consultation, or reach out to us by emailing jared.andreoli@simplicityfinancialllc.com or calling 414-207-6473.
About Jared
Jared Andreoli, CFP®, CSLP®, is president and financial planner at Simplicity Financial, a fee-only RIA dedicated to helping early-career physicians conceptualize their financial picture and achieve their financial goals. Jared specializes in devising individualized financial road maps for clients, and he loves nothing more than a full day meeting with clients who value his partnership to solve problems—big and small.
After college, Jared spent six years working as a mutual fund administrator for a large company. While he learned an immense amount about the financial world, he was missing the personal connection of working with individual clients. Combining his passion for finance and personal connection, he established Simplicity Financial in 2017.
Jared has a degree in finance with a concentration in financial planning from Western Kentucky University, along with the CERTIFIED FINANCIAL PLANNER®, CFP® and a Certified Student Loan Planner (CSLP®) certifications. Outside of work Jared enjoys cooking and traveling. He played baseball in college and still coaches occasionally. He and his wife recently welcomed a daughter, who occupies most of their time. To learn more about Jared, connect with him on LinkedIn.