Retirement Planning for Doctors & Dentists: How is it Different?

While both doctors and dentists are in the medical field when it comes to retirement, the situation is different for them. This is because their roles as professionals differ, with doctors having a longer working duration. In this blog, we will see how retirement planning varies across doctors and dentists. Let’s get started.

When it comes to building a retirement kitty, doctors have more time at their disposal compared to dentists. The role of a doctor is constantly evolving, and they can train themselves for specialised procedures and treatment, which can generate high income for them.On the other hand, dentists have a limited scope. Also, doctors can take up advisory and academic roles, which can generate extra income that they can save and invest to build a sizeable retirement corpus . As dentists tend to retire early because of limited scope, they have less time to address this essential life goal.

Medical courses are expensive to pursue, and specialised courses require even a higher fee. Loans are a prudent option to fund them. For doctors, repaying these loans are the first priority when they start earning. Thus, during their initial years, a chunk of their earnings may go in repaying the loans.Also, the quantum of the loan may be higher for doctors compared to dentists. This means dentists have higher investable surplus to build a retirement corpus. On the other hand, it takes time for doctors to have an investable surplus, which they can direct towards their retirement kitty.

It takes time to become a specialised doctor, which translates into earning late. On the other hand, dentists start earning earlier than doctors. This means that they can save and invest earlier than doctors.However, with a specialised course, doctors may earn higher than dentists, which can bridge the shortfall of the initial years.

Though the retirement approach may differ for doctors and dentists, there are certain things common which they can follow to build a sizeable corpus. For example, apart from making regular monthly savings, they must invest in inflation-beating instruments to ensure they don’t fall short of the required corpus.A combination of fixed return and market-linked instruments can also work. While the latter may help in generating high returns, the former prevents a dip in corpus in case of market volatility. Also, as they are busy professionals, they may not have time for financial planning. In such a scenario, seeking help of a certified finance professional can help.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.