Doctors may make a lot of money, with an average annual salary of just under $300,000, but many are not doing enough to save for a comfortable retirement, according to a new report from Fidelity Investments.
A Boston-based financial services company, Fidelity is a provider of retirement investment plans as well as financial guidance.
Its new report analyzed the retirement savings behaviors of 5,100 doctors, the firm said. Several reasons explain why doctors may not be saving as much for retirement as Fidelity believes they should. For openers, many don’t get out of school and start earning money until they’re in their 30s. And when they do, they’re often weighed down by debt from student loans.
Based on Fidelity’s analysis, many doctors are on track to replace only 56 percent of their income in retirement, considerably lower than the income replacement rate of 71 percent that Fidelity suggests for those earning more than $120,000 annually.
“This analysis reveals that physicians are not as financially prepared for retirement as one might think, which is a clear indication that employees at all income levels need financial guidance,” Rick Mitchell, a Fidelity executive vice president, said in a statement. “Physicians work hard, and the well-being of their patients are at the center of everything they do. That’s why they should enjoy the peace of mind of knowing their retirement plan has been given a ‘clean bill of health,’ and we are working closely with our health care partners to help their employees—including physicians—achieve retirement readiness.”