Retirement Readiness Calculator

Check if you're on track for retirement using multiple proven methods: the 4% rule, age-based savings multiples, and Monte Carlo simulation.

Physicians can retire early with proper planning

Your Profile

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Timeline

Years: 30 to retirement, 30 in retirement

Financial Situation

Savings rate: 60.0%

All assets minus liabilities

401k, IRA, etc.

Contributions

✅ Maxing out 401(k)

Total: $33,500/year

Retirement Lifestyle

83.3% of current expenses

Return Assumptions

8.0% (aggressive growth)

6.0% (conservative)

3.0% (historical avg)

Enter your details and click Calculate

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Retirement Planning for Physicians

Late career start, high income, high student loans - physicians need a different retirement strategy.

Most physicians start earning at 30-35 after residency/fellowship, missing critical compounding years. But with incomes of $250-600k+, you can catch up fast if you optimize your retirement strategy. The key is maximizing tax-advantaged contributions early and avoiding lifestyle inflation.

The Physician Retirement Roadmap

  • Years 1-5 post-training: Max out 401(k) ($23,500 in 2026) + employer match. If income allows, backdoor Roth IRA ($7,000) and mega backdoor Roth ($69,000 total 401k limit). Target 20-25% savings rate minimum.
  • Years 5-15: Increase to 25-30% savings rate. Add taxable brokerage for early retirement flexibility. Consider real estate or other tax-advantaged investments. Build to 5-6x annual income saved.
  • Years 15-25: Peak earning years. Maximize all retirement accounts. Target 8-10x income saved. Start tax planning for retirement withdrawals. Consider Roth conversions in lower income years.
  • Pre-retirement (5-10 years out): Shift to more conservative allocation. Plan withdrawal strategy. Consider part-time work in retirement to extend savings. Ensure 12x+ income saved.

The 4% Rule for Physicians

The 4% rule states you can safely withdraw 4% of your retirement portfolio annually (adjusted for inflation) for 30 years. This means you need 25x your annual retirement expenses saved.

Example: If you need $120k/year in retirement, you need $3M saved ($120k / 0.04 = $3M). At 4% withdrawal, your $3M generates $120k/year. This is conservative and based on 50+ years of market data.

Physician-Specific Considerations

  • Malpractice Tail Coverage: Set aside 2-3x annual premium for tail coverage when retiring. Can be $50-150k for surgeons.
  • Defined Benefit Pensions: Some employed physicians have pensions. Calculate the equivalent value (pension / 4% = equivalent portfolio value) to reduce how much you need to save.
  • Part-time work: Many physicians work part-time in retirement (locums, consulting, expert witness). Even $50-75k/year dramatically extends your portfolio life.
  • Healthcare costs: Plan for $15-20k/year until Medicare at 65. If retiring early, this is critical.

Common Questions

Can physicians retire early despite starting late?

Yes! High income compensates for late start. A physician earning $400k saving 25% ($100k/year) from age 35-55 at 8% returns will have ~$4.5M - enough to retire at 55 with $180k/year (4% rule). Many physicians who optimize early can retire by 50-55 if desired.

What's the ideal savings rate for physicians?

Target 20-30% gross income. Early career (first 5 years), aim for 20% minimum while paying down loans. Once loans are gone, increase to 25-30%. This includes employer match. For aggressive early retirement, some physicians save 40-50%. Calculate what works for your retirement age goal.

Should I prioritize retirement or student loans?

Do both, but prioritize employer match (free money) and loans >6% interest. Contribute enough for full employer match, then aggressively pay loans >6%. Once loans are 4-6%, split extra money between loans and retirement. Loans <4%, max out retirement first. PSLF eligible? Max out retirement and make minimum payments.

Disclaimer: This calculator provides projections based on your inputs and assumptions. Actual investment returns vary and are not guaranteed. Past performance doesn't predict future results. Consult a qualified financial advisor for personalized retirement planning advice.

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