Doctors start their careers much later than other occupations. Typically not until their early 30s at the earliest. This means that doctors will usually have much shorter careers than their non-physician counterparts. But how much shorter?
Most doctors work for 32-34 years. The average physician will start residency at age 28, train for 3 to 5 years, and retire at age 65, the traditional retirement age. However, some doctors will continue to work beyond retirement age into their 70s and 80s. These doctors will have significantly longer medical careers.
Starting to work almost a decade later in life doesn’t only mean that doctors have shorter careers. It affects their ability to retire and many other aspects of a doctor’s life.
Average Length of A Doctor’s Career
There are two main sources for data on physician career length. The US census and the FSMB physician census, both providing similar data on the career lengths of physicians.
The data show that although some doctors start their careers before age 30 (most likely due to the number of combined medical school programs), the vast majority won’t start practicing medicine until after they’re 30 years old. In fact, the average medical student doesn’t graduate until age 28. If you add in a 3-5 year residency, that means the average doctor won’t start working until age 31-33.
Most physician will also retire at the traditional retirement date of age 65. The data show a steep drop off in the number of licensed practicing physicians after age 65.
Put together, that means most doctors will only work for 32 to 34 years.
Do Doctors Have A Retirement Age?
However, doctors don’t necessarily have to retire exactly at age 65. Almost 20% of physicians maintain an active medical license beyond this traditional retirement age.
Some (around 11%) will continue to practice even into their 70s and 80s.
Compare this to previous data from 2010, where according to the US census, the number of physicians and surgeons practicing beyond traditional retirement age was only 8%. That’s a significant increase.
Why is this?
In part, it’s because doctors do start their careers much later in life. A software engineer retiring at age 65 might have a 40+ year career compared to a doctor who only has 34 years before age 65.
But there are a number of other reasons why doctors might continue working into their older age.
They’re passionate about medicine
Some doctors just love what they do. One cardiothoracic surgeon I know is 61 and has no plans to retire any time soon. In fact, he just signed a 5 year contract at a new gig. For the past 20+ years his routine has been the same. Wake up early, operate, go to clinic, repeat. And the community he serves adores him. “I’ll stop when my hands stop working,” he said.
They have an identity crisis
For others, that passion for medicine isn’t quite as strong, but being a physician is their identity. Retirement for them might mean loss of social interaction with peers and coworkers, detachment from their community, or even just boredom.
In a 2017 survey, CompHealth found these as the primary concerns physicians have about retirement.
This is kind of what’s going on right now with my dad. He’s a “retired” foot and ankle surgeon, well into his 70s, but keeps his license active to practice a few half days per week working in clinic and seeing patients in the hospital. I asked him why he keeps at it, and he said, “I enjoy it. It’s a good break from being at home like every other day.”
They need the money
If you’re an avid reader of the average doctor blog, you probably already know that despite starting their careers a little later, doctors should fairly easily be able to save up enough money for a comfortable retirement. And this is exactly what the CompHealth survey found, with 83% of their respondents saying they’ve taken steps to prepare for their retirement.
However, lack of sufficient savings is the #6 concern physicians have about retirement.
Why?
Because being a doctor doesn’t guarantee you a wealthy retirement.
Sometimes you don’t get there. Most often because you never control your finances and become the “rich doctor”, overspending on house, car, and lifestyle. Or maybe you just never learned to invest.
Or maybe there were other reasons beyond your control. Things like divorce, illness. Sometimes life just happens.
Regardless of the why, some doctors don’t make it to age 65 with enough to retire comfortably. But they do still have the ability to get paid like a doctor. So they’ll keep working for a few more years.
Can Doctors Retire Early?
Now we know why some doctors continue to work past the traditional retirement date, but is it possible for doctors to retire early? And what do we even mean by early retirement?
I’m earlier in my career, but I would call early retirement any retirement that begins before age 65. However, some docs are retiring significantly earlier.
This is through what’s known as FIRE, or Financial Independence, Retire Early. It’s a “movement” that In the past few years has exploded. And doctors did not miss the memo.
According to FIRE, an individual needs to save and invest enough money to meet their FIRE number. The number where their investments can support their lifestyle indefinitely by withdrawing just 4% per year. That means take your current annual spending, multiply by 25, and that’s your FIRE number.
Could a doctor save and invest enough to support their lifestyle before age 65? Of course. What about 55? 45?…..35?
The specifics of early retirement are something I’ll discuss in more detail in another post. But let’s just say that even with a delayed entry into their careers, doctors absolutely can achieve early retirement.
But should they?
Should Doctors Retire Early
Let me tell you a secret: I’m a doctor. And I plan to retire early.
So maybe I’m biased.
But I do not believe that every doctor needs to work until age 65, and I especially don’t think they should have to work longer than that.
Every physician should be able to retire early.
Because even though you decided to go to medical school in your early 20s, that doesn’t mean you’ll still want to be a doctor in your late 40s.
Because even though you dedicated thousands of hours to the practice of medicine, medicine isn’t the only thing in life.
Because even though you sacrificed travel and partying and time with friends and family during training, you only have so much time left to do that now.
Because your health won’t last forever.
Because maybe medicine isn’t what you thought it was. That it’s not just medical care but also documentation and bureaucracy. That the system keeps asking you for more, more, more.
Or maybe because one day, that hospital system you worked decades for went bankrupt or decided to let you go and replace you with someone else to save costs. And instead of that being a major setback, you’d rather be prepared.
Those are just some of the reasons I know for why a physician would want to be able to retire early. And I’m sure you could add many others.
Now, I do keep saying “the ability to retire early”. If you’re one of those doctors who loves what they do and can work forever, I say keep doing it. More power to you.
But even those doctors should still achieve FIRE. Maybe not for the early retirement, but definitely for the financial independence.
How Long Should A Doctor’s Career Be?
The average doctor will finish residency by age 31-33 and retire by age 65. So they will work in their careers for around 32-34 years.
But how long should a doctor’s career be?
I would say as long or as short as they want it to be.
