When it comes to wealth-generating occupations, physicians usually make the top of the list. In reality, most early-career physicians are actually HENRYs (High Earners, Not Rich Yet). “High earners not rich yet” individuals have a better opportunity to get on track for wealth in the future because of their six-figure income. However, because they have little to no savings or investable assets, they are essentially the “working rich,” meaning they won’t be wealthy if they stop working.
This is partly because medical careers start later than other professions, after having accumulated large amounts of student loan debt from their education. In fact, according to the latest 2022 Medscape report which surveyed 13,000 doctors, the average physician graduated with $203,000 in debt. Only half of physicians reported a net worth of over $1 million, and not until the age of 55.
Today let’s review net worth by age for doctors through the decades.
Meeting Your Goals
There are several reasons why some physicians of different age groups retire as millionaires, while others are still working into their sixties and seventies. While student debt is a significant factor, many physicians lack the savings and financial knowledge to build wealth through smart investments despite their high earnings.
Most doctors spend at least part, if not all, of their twenties and early thirties in training. The average age of a medical student is 24 when they begin a four-year medical program. This is followed by three years of residency, meaning a doctor will be 31 before they can practice independently.
GUIDES
The Essential Guide to Retirement Planning
A 4-part series that answers key questions about building your plan, positioning your investments, and more.
FREE Download While doctors experience a significant salary increase in their thirties, they have large debts to pay off. Still, they can expect to have an average net worth of $500,000 if they have managed their finances carefully and have begun investing.
By the time physicians reach their forties, it is very possible to achieve millionaire status, with some physicians even becoming multimillionaires. This trend continues with doctors in their fifties, with 60% of physicians’ worth at least $1 million.
By the time doctors reach their sixties, and beyond, they may be looking towards retirement. While 60% of physicians can retire with a net worth between $1 and $5 million, 25% of doctors still have a substantially lower net worth.
ACCREDITATIONS & AWARDS
We’re proud to have been honored by some of the organizations in our industry.
MORE Details When Will You Pass the $1 Million Mark?
The average age to become a millionaire is 37. If you’re a physician, you may think that benchmark is unattainable, but there’s no reason why you can’t have a net worth of $1 million or more in your 40s if you invest wisely.
Regardless of where you are in your career, the financial advisors at Blankinship & Foster can help. We offer financial planning for physicians to help them avoid costly financial mistakes early in their career. We also work with established physicians to implement long-term investment strategies that build wealth and minimize taxes.
It’s never too late to begin saving and investing for your future.
Disclosure: The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice, and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites.
FAQs
By the time doctors reach their sixties, and beyond, they may be looking towards retirement. While 60% of physicians can retire with a net worth between $1 and $5 million, 25% of doctors still have a substantially lower net worth.
What percent of doctors make over $500,000? ›
More than 25 percent of physicians in 2017 earned above $425,000 annually and the top 1 percent of physicians averaged $4 million in annual earnings — 10 times the average annual earnings in the sample and more than twice the average earnings in the top 5 percent.
What is the net worth of a family physician? ›
While 2023 was a healthy year in the US stock markets, and 51% of family physicians reported family net worth of $1 million or more, vs 44% in the prior-year report and 39% in our 2019 report.
What percentage of doctors are millionaire? ›
In order to qualify as a millionaire, you must have assets worth $1 million or more. The 2021 physician wealth report showed that 56% of physicians reported a net worth of over $1 million. The majority of family physicians become millionaires by the age of 55 — only 11% had a $1 million net worth before 45.
At what age do most doctors become millionaires? ›
Millionaire Status
Across the board according to the 2021 physician wealth report, 56% of physicians reported a net worth of over a million. Out of family physicians, the majority become millionaires by the age of 55, with only 11% having a net worth of a million before 45.
What age do most physicians retire? ›
Did you know most physicians retire after age 65? According to 2021 data from the Center for Retirement Research at Boston College, the average retirement age for men is 65, and for women, it is 62. Based on survey data from the AMA Insurance Agency Inc., 58% of physicians retire after age 65.
Can a doctor make $1 million a year? ›
Doctors in the top 10 percent averaged $1.3 million. And those in the top 1 percent averaged an astounding $4 million, though most of that (85 percent) came from business income or capital gains.
How rich is the average doctor? ›
Twenty-eight percent of physicians have a net worth ranging between $2 million and $4.9 million in 2024, according to Medscape's 2024 "Physician Wealth & Debt Report," published June 12. An additional 25% of physicians have a net worth of less than $500,000, while 21% are worth $1 million to $1.9 million.
At what age do doctors start making money? ›
For example, while a graduate who holds a master's degree in computer science can start competing for top developer jobs after about six years of college, or around their mid-20s, doctors won't start earning their $200,000-plus salaries until much later (early 30s).
What is the richest type of doctor? ›
2. What Are the Highest-Paid Doctors in the US? The highest-paid doctors are neurosurgeons who report earning above $780,000 per year on average.
Nearly 25 percent of all medical students come from the top five percent of household incomes (greater than $270,000 in 2019), and 37% of these high-income students will be paying for medical school primarily using family or personal funds.
What is the highest paid family physician? ›
The average annual salary for all physicians is $339,000, according to an April 2022 report from Medscape. Idaho is the highest paid state in the U.S. for family medicine physicians with a mean annual salary of $305,960, according to the U.S. Bureau of Labor Statistics.
What is the net worth of a physician when they retire? ›
You will see that at retirement age, 15%-22% of doctors have more than $5 million, and one-quarter have less than $1 million. The majority of docs are in between those two figures.
What is the average retirement savings for a doctor? ›
On average, men stated that $4.1 million would provide a comfortable retirement, with women stating $3.6 million. Overall, the average for physicians was $3.9 million. At these levels, physicians have typically funded about 77% of their desired amount.
What retirement income is considered wealthy? ›
Home equity and moderate nest eggs facilitate occasional luxuries and social engagements. With a net worth of $1.9 million, retirees in this percentile are deemed well-off, enjoying a lifestyle enriched by extensive savings and investments. This includes bucket-list travels, charitable endeavors and legacy planning.
What is a comfortable net worth for retirement? ›
According to Paces Ferry Wealth Advisors, Your net worth should equal six times your annual salary by this age. So, if your annual salary is $100,000, a net worth of around $600,000 would be on track for a comfortable retirement.
What is a high net worth retirement? ›
Key Takeaways. A high-net-worth individual (HNWI) is a person with typically at least $1 million in liquid financial assets. North America had a record number of high-net-worth individuals, at 7.9 million people as of 2023. 1. An ultra-high-net-worth individual has a net worth of more than $30 million.
