physician retirement

Physicians’ Retirement Readiness Improves, But 40% Still Behind Schedule

Commentary on Becker’s Hospital Review article by Kelly Gooch

Physicians rank a comfortable retirement as their personal financial goal, but many are lagging behind in their retirement plans, according to a recent survey cited by Becker’s Hospital Review.

More Feel Ready, But 40% Say They’re Not Saving Quickly Enough

The good news is more feel like they’re ahead of schedule: the proportion of physicians who feel that way grew from 6% in 2013 to 11% in 2016, according to a survey of 25,000 practicing physicians by the American Medical Association Insurance cited by Becker’s Hospital Review.

But a whopping 40% said they’re behind schedule, the publication writes. And much of it has to do with financial education.

Physicians who said they’re prepared for retirement were eight times more likely than those who feel behind to say that they have a good handle on topics including retirement planning, investing and insurance, according to the study.

Those prepared for retirement also have more money put away than peers at their career stage or age, even though age alone didn’t correlate too highly with feeling ahead of schedule, Becker’s Hospital Review writes.

They’re also more diversified, contribute the maximum allowed to their qualified retirement plans and have less debt, according to the survey.

In addition, financial advisors seem to play a major role in physician’s retirement attitudes and preparedness. Out of those who said they’re ahead of schedule, 67% work with an advisor, compared to 44% of those who said they’re behind, according to the survey.

Source: Becker’s Hospital Review

Posted by: The Wealthy Doctor

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Physicians’ Retirement Readiness Improves, But 40% Still Behind Schedule - overview

Summary: Physicians rank a comfortable retirement as their personal financial goal, but many are lagging behind in their retirement plans, according to a recent survey cited by Becker’s Hospital Review.

The good news is more feel like they’re ahead of schedule: the proportion of physicians who feel that way grew from 6% in 2013 to 11% in 2016, according to a survey of 25,000 practicing physicians by the American Medical Association Insurance cited by Becker’s Hospital Review.

But a whopping 40% said they’re behind schedule, the publication writes. And much of it has to do with financial education.

Physicians who said they’re prepared for retirement were eight times more likely than those who feel behind to say that they have a good handle on topics including retirement planning, investing and insurance, according to the study.

Those prepared for retirement also have more money put away than peers at their career stage or age, even though age alone didn’t correlate too highly with feeling ahead of schedule, Becker’s Hospital Review writes.

They’re also more diversified, contribute the maximum allowed to their qualified retirement plans and have less debt, according to the survey.

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