You’ve spent years in medical school, residency, and possibly fellowship. Now you’re earning an attending physician’s salary, and retirement planning should feel a little easier, right?
Not necessarily.
You’ve probably heard the standard advice to save 10% to 15% of your income for retirement. While that may work for some professionals, physicians often need to save closer to 20% to 25% of their gross income.
Here’s why, and how to make the most of your remaining working years.
Why Physicians Need to Save More for Retirement
The traditional 10% to 15% retirement savings guideline generally assumes a 40-year career, with contributions beginning in your early 20s.
But physicians often don’t begin earning their full salaries until their early 30s or later. And depending on your specialty, you may want to reduce your hours or retire in your late 50s or early 60s.
That leaves a shorter window to build your retirement savings. While your higher income can help you catch up, it doesn’t replace the years of investment contributions and compound growth you’ve missed.
For many attending physicians, saving 20% to 25% of gross income is a more appropriate starting point.
How Much Do You Actually Need to Retire?
Rather than focusing exclusively on a savings percentage, start by estimating how much annual income you’ll need in retirement.
One common approach is the 4% withdrawal guideline, which suggests building a portfolio worth approximately 25 times the annual amount you plan to withdraw.
For example, let’s say:
- You want $200,000 in annual retirement income.
- You expect $40,000 from Social Security.
- Your investments need to provide the remaining $160,000.
Multiplying $160,000 by 25 gives you a retirement savings target of approximately $4 million.
This is a planning estimate, not a guarantee. Your actual target will depend on your retirement timeline, taxes, investment performance, spending needs, and other income sources.
The good news? You may not need to replace your entire attending salary. By retirement, your mortgage may be paid off, your children may be financially independent, and you won’t need to continue making large retirement contributions.
Where Should Physicians Put Their Retirement Savings?
Once you’ve established a retirement savings target, the next step is deciding where your contributions should go.
Physicians often have access to several tax-advantaged savings opportunities. For 2026, these include:
- 401(k) or 403(b): Contribute up to $24,500, plus eligible catch-up contributions.
- 457(b): If your employer offers an eligible plan, you may be able to contribute an additional $24,500, although plan rules and risks vary.
- Health Savings Account (HSA): Eligible individuals can contribute up to $4,400 for individual coverage or $8,750 for family coverage.
- Backdoor Roth IRA: For higher-income physicians, this strategy may allow contributions of up to $7,500 per person through a Roth conversion, subject to applicable tax rules.
- Taxable brokerage account: Once you’ve taken advantage of available tax-advantaged accounts, additional investments can help you build wealth without annual contribution limits.
If you’re married, your spouse’s available retirement accounts may provide additional savings opportunities.
Make Your Retirement Savings Automatic
Physicians have demanding careers, and retirement planning can easily take a back seat to everything else.
One way to stay consistent is to automate your contributions, review your retirement savings target annually, and consider increasing contributions as your income grows.
Your ideal savings rate will also depend on your student loan obligations, desired retirement age, household income, and how many years you have left to practice medicine.
The bottom line: Saving 10% to 15% may not be enough for physicians who started their careers later. A 20% to 25% savings rate may be a better starting point, but the right number comes from understanding your personal retirement objectives.
At Bona Fide Finance, we work primarily with physicians, helping them determine how much to save, where to invest, and how to build a retirement plan around their unique circumstances.
Ready to put a number on your retirement target? Schedule an introductory meeting by calling (701) 203-3219 or emailing hello@bonafidefinance.com.
Frequently Asked Questions
How much should physicians save for retirement?
While traditional retirement guidance recommends saving 10% to 15% of your income, many physicians may need to save closer to 20% to 25%. Because doctors typically begin their careers later, they have fewer years to contribute and benefit from compound growth.
How much money does a physician need to retire?
Your retirement savings target depends on your desired lifestyle, retirement age, and other income sources. Using the 4% withdrawal guideline, a physician who needs $160,000 annually from investments would target approximately $4 million in retirement savings.
What retirement accounts should physicians prioritize?
Physicians can take advantage of employer-sponsored 401(k), 403(b), and eligible 457(b) plans, along with health savings accounts (HSAs), backdoor Roth IRAs, and taxable brokerage accounts. The best combination depends on your income, employer benefits, and tax situation.