Here’s how doctors can catch up on retirement savings
A dearth of retirement savings is a big problem in the United States, according to a report published by the National Institute on Retirement Security (NIRS). The typical working American has no retirement savings. And those who do save, often don’t save enough.
Doctors often find themselves playing catch-up when it comes to retirement savings. Here are some tips to strengthen your retirement saving plan.
“Even after counting an individual’s entire net worth—a generous measure of retirement savings—three-fourths (76.7%) of Americans fall short of conservative retirement savings targets for their age and income based on working until age 67,” according to the authors of an NIRS report.
As a physician, you’ve studied, trained, and worked too hard not to enjoy retirement. Many physicians can only start saving for retirement in earnest by their 40s. At this point, it becomes a game of catch-up. So, what’s a doctor to do?
The key to attaining retirement-savings goals entails investing in addition to savings, said Chris Jennings, CFP, of Heron Wealth.
“Physicians often have a lot of money in savings accounts, but not enough in investment accounts,” he noted. “Whether that’s because of the intimidation factor inherent to investing or because their jobs leave them with little time to proactively manage investment accounts, they’re leaving a lot of money on the table.”