Here’s the secret to their retirement that you don’t know

• Physicians face numerous financial challenges, including high student debt, late career starts, low starting salaries, and extended work weeks.

• Doctors are a good fit for the Financial Independence, Early Retirement (FIRE) model, which works on the principle of saving aggressively to achieve financial freedom as early as possible, a solid option for anyone with a penchant for saving and high earning potential.

Achieving financial freedom and retirement on your own terms requires a strategic plan. This is especially true for many doctors, who often accumulate a substantial amount of student loan debt and don’t start earning high salaries until later in their careers.

Despite these obstacles, some doctors aspire to retire early. We explore how physicians manage debt and save for retirement, and how others can adopt these principles to achieve financial independence.

There are a lot of misconceptions about doctors. The most common ones are that doctors are rich and have high net worths. But this is not always the case.

The reality is that it can take over a decade to become a doctor in the United States. Being in school that long often leads to a significant amount of student loan debt, with the average amount of medical debt reaching $216,659 in 2025. It also means that most doctors don’t start their careers until their 20s, or 30s if they specialize.

Doctors must complete a residency, which can last anywhere from three to seven years, depending on the specialty area, with a first-year resident salary averaging $63,000.

Doctors face many financial hurdles during their residency. This includes student debt that accrues interest as well as their living expenses. But their earning potential increases after they complete their residency.

“It’s the balance of multiplying one’s income overnight while juggling high student loan debt, raising a family, buying a house and being a great doctor,” said Chad Chubb, founder and certified financial planner at WealthKeel.

Because of the late start in their careers, many doctors have to think about saving aggressively in order to achieve financial freedom, Chubb said. Investopedia. This includes paying off debt and saving for retirement.

Late career starts and the physical demands of the job can affect many doctors. Financial burdens only add to this stress. One way physicians can enjoy financial flexibility is by participating in a movement called FIRE (Financial Independence, Retirement Early). The goal is for doctors to save as much money as they can immediately after completing training.

“I generally recommend that physicians try to maintain their resident lifestyle for two to five years after residency training is completed,” said Dr. Jim Dahle, an emergency room physician.

Dahle, founder of The White Coat Investor, which provides personal financial resources to physicians, said physicians can retire early by using the difference between their practicing physician income and resident lifestyle to quickly reach their financial goals.

This allows them to pay off their student loans, meet other financial obligations, save for retirement and avoid career burnout. According to Dahle, 25 percent of doctors reach their mid-60s with a net worth of less than $1 million, which he considers “pretty pathetic” considering they’ve earned somewhere between $5 million and $15 million over the past 30 years.

This may be because doctors do not have the advantage of working in their favor unlike other professionals. That’s why Dahle suggests doctors start saving as soon as possible. Chubb has some key rules doctors can follow to achieve financial freedom and retire early.

Even if you’re not a doctor, you can also follow these tips to try and get an early retirement:

• Run the numbers: Figure out how much you’ll need to cover your annual expenses when you retire, and multiply that by 25 or 30 to get a rough total of how much you should try to save. For example, if you need $100,000 in expenses each year, you’ll need $2.5 million to $3 million saved for retirement.

• Start saving as soon as possible: For example, when you’re younger and training, you can probably afford to save 10% to 15%. If you wait until you’re older, you’ll probably need to put more money away.

• Use tax-advantaged accounts: Save in 401(k)s, 403(b)s, Roth Individual Retirement Accounts (Roth IRAs), and Health Savings Accounts (HSAs) and max out your contribution limits whenever you can. If your employer gives you a match, you get “free money” and your contributions reduce your adjusted gross income (AGI).
  

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