Report: Doctors Have Poor Retirement Plans

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Many doctors have poor retirement plans, Market Watch reports.

According to a survey by Fidelity Investments, the “typical physician hasn’t saved enough money to adequately sustain his lifestyle in retirement.”

Due to “residencies and other training requirements, they typically can’t start earning significant incomes until after age 30.” Additionally, “with student debt that can climb high into the six-figure range… it’s easy to imagine why a younger physician might struggle to fully fund her nest egg.”

They survey also found “the typical doctor isn’t able to save 15% or more of his annual income until after age 50.” Since they begin saving so late, many doctors invest their savings in “higher-risk, higher-reward equities.”

Fidelity has these recommendations for physicians:

1. Save the 402(g) limit in qualified retirement saving plans and maximize Health Savings Accounts

2. Put funds in other savings accounts like “non-qualified defined contribution savings plans, IRAs, tax-deferred annuities and brokerage accounts.”

3. Plan to save at least 15% of income a year

4. Seek a professional to “develop savings rates goals, ensure asset allocation is age-appropriate and create a retirement income plan.”

Summary by MedicalGroups.com

Click Here to read more from Market Watch or Here to read more from Fidelity