Once your degrees are earned and jobs are secured, many doctors and dentists find themselves on the fast track to some major financial goals -- including, perhaps, early retirement. After all, between those extra years of studying and the daily demands of working in medicine, doctors and dentists might feel like they've worked a full career well before they hit their 60s.
If you're considering adding early retirement as a life goal, discuss these pros and cons with your spouse and your Life-Centered Financial Planner.
1. You're Burned Out ... But are You Done Working?
The 2020s have been hard on medical professionals. We're still grappling with the physical and emotional toll of working through COVID. Technology and government regulation are both changing how doctors work and what kind of care patients expect. And a broadening awareness of mental health issues is forcing doctors and dentists to think beyond money as they assess work-life balance.
For some medical professionals, early retirement may indeed be the best solution to these and other issues.
But doctors and dentists who can still feel their professional passion buried under all that stress and anxiety might consider alternatives, such as taking a sabbatical, scaling back office hours, or transitioning to less stressful teaching roles.
If you have the means to retire, you might also have the means to start your own practice where you can set your own schedule and build an energizing professional culture.
2. You Want More Free Time ... But Wow Will You Spend It?
Retirees of all ages often discover that not working can be just as exhausting as working.
After a few “endless weekends” on the couch, boredom sets in.
Weekend golfers and tennis players find that playing every single day isn’t as fun as it sounds.
Most friends and family members who are the same age are still busy working and raising their families.
Spouses who aren’t used to spending the bulk of their days together can feel the walls shrinking. And a spouse who is still working might feel resentful.
Whether you retire at 55 or 75, the most successful retirees retire TO something, not just FROM work. Our Ideal Week in Retirement tool could help you visualize a new schedule that will fill your days with purpose, fun, and opportunities for growth.
3. You Have Enough Money ... But Is It Really Enough?
According to a recent report, almost 70% of doctors in their 40s want to retire in their 50s or early 60s. Most respondents probably have their debts paid down and a decent nest egg built up
But even if more and more doctors and dentists think 50 is the new 60, the federal government doesn't agree.
Social Security eligibility doesn't start until age 62. If you need your benefits to realize an early retirement goal, your benefits will be smaller than they would be if you kept working, or at least waited until full retirement age to claim them.
If you can't jump onto a working spouse's subsidized health care plan, you'll have to pay for insurance out of pocket until you can sign up for Medicare at age 65.
While your income and savings might meet your needs today, inflation is going to keep driving up prices.
And no matter how thorough your budgeting is, life happens. New goals and interests will cost money. So will challenges, like a home repair or a sudden illness.
If your ROL from work isn’t matching your ROI, let’s meet to discuss if early retirement is the best option and some potential adjustments to your Life-Centered Financial Plan.
