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.
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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.
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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.
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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.
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FAQs
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 is the net worth of a family physician? ›
Both male and female family physicians report a net worth exceeding $5 million at about the same rates as in last year's report (5% and 2%, respectively). Results are similar to last year's for those with a net worth under $500,000 (32% and 47%, respectively).
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).
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.
Do most doctors retire as millionaires? ›
Very few Physicians are super rich in the millions . Most doctors are Upper Middle Class. Physicians may do it less often than other well paid people because they start their careers late and often have huge school loans.
What age do most physicians retire? ›
According to a 2021 survey by Medscape, the average age of retirement for physicians in the United States is 65, although this can vary widely. Factors that can influence the retirement age of doctors include financial considerations, career satisfaction, and health status.
What age do doctors become millionaires? ›
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.
What are most doctors net worth? ›
Average physician compensation was $352,000 in 2022, up from $299,000 in 2018. About 59 percent of physicians reported family net worth exceeding $748,800 — the national average for an American family, according to the Federal Reserve. View the full report here.
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.
Is 60 too old to become a doctor? ›
There is no age limit for medical school. You can become a doctor in your 30s, 40s, 50s, and even 60s.
A majority of oncologists (85 percent) have a net worth of less than $5 million, a new Medscape report shows. Medscape collected information from 17,461 physicians in 30 specialties, including oncologists, for the survey between Oct. 4, 2019 and Feb. 10.
How much did doctors make in the 1970's? ›
Average net income of physicians, by specialty: United States, 1975 and 1983-84
| Specialty | 1975 |
|---|
| All physicians | $53,600 | $92,930 |
| General practice | 44,800 | 77,673 |
| Internal medicine | 53,900 | 93,451 |
14 more rowsYou 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 account for a physician? ›
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.
Do surgeons really make 2 million a year? ›
The median surgeon who responded to our 2022 annual survey earned between $500,000-$1 million, and more than 13% of respondents earned more than $1 million per year.
What net worth is considered rich in retirement? ›
To be considered wealthy at age 65 or older, you need a household net worth of $3.2 million, according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF) to determine the household net worth needed at age 65 or older to determine the various percentiles of wealth in ...
Is $10 million enough to retire at 55? ›
Even under very dire circ*mstances, there's almost no way that $10 million isn't enough for you to retire at 50. Even if you parked the money in a checking account and didn't use it to generate further returns, you could live on $200,000 a year for 50 years before you ran out.
What is a high net worth retirement? ›
People tend to underestimate “high net worth,” citing $400,000 as the median average, which is significantly less than the broadly accepted definition of a HNWI: someone with at least $1 million in liquid assets. Getting clarity on your net worth is an important step toward financial wellbeing.
What is the average revenue per physician? ›
While the AMGA 2023 Medical Group Operations and Finance Survey, made up of more than 15,000 providers and over 5,700 individual clinics, found an increase from $608,639 to $719,901 in median total revenue per physician, median total expenses also increased from $905,283 to over $1 million per physician, according to ...
