I recently had the chance to go backpacking with a couple of guys around my age. One of them is just a bit over 50, while the other is a little under. The younger one, while not a doctor, is making what you could call “doctor-like” money due to his successful career. As is often the case with me, the conversation soon veered into finances.
Both of them are doing quite well financially, having saved and invested throughout their careers. Sure, they started off slowly, but now they’re both looking at retiring around their mid-50s, which has them genuinely excited. Their friendship seems solid, and they have plans for adventures—backpacking trips, travel, and other fun stuff. They still need a couple more years to get everything just right financially, but it seems their plans are on autopilot. They might not have the exact timing down, but in a few years, they’ll be able to retire comfortably.
Win at 50
Looking back after our trip, I thought, “This is what winning at 50 looks like.” One of them is set to qualify for a solid pension in just a few years, and both have managed to amass millions. They’re financially savvy, managing their own investments primarily with index funds, which saves them on advisory fees. Soon, they’ll also join the empty nesters. They’re contemplating selling their current homes for something that suits their retirement plans better.
50-year-old Doctor
Now, let’s talk about 50-year-old doctors. There’s a wider range in their financial situations. I’ve met some who are quite wealthy, soaring over the $5 million mark in net worth. Yet, on the flip side, many are struggling. According to a Net Asset Survey from Medscape, a large segment—25%—of doctors in their 60s report having negligible wealth. And even fewer—about 12%—have a net worth that doesn’t reach $500,000. That’s a tough spot to be in.
More often than not, if you’ve earned between $200,000 and $500,000 for 20-30 years and your net worth is under a million, well, that’s not exactly winning. I mean, sure, anyone can take steps to improve their situation, but it’s hard to call it a victory.
So, what does success look like at 50? For my spouse Katie and me, we laid out our original financial plan back in 2004, with a starting income around $225,000. With some adjustments over time, we managed to work part-time earlier than expected, thanks to rising doctor salaries and better-than-anticipated savings rates. Eventually, we achieved financial independence by the time I turned 43.
Reflecting on that original plan, I’d say it’s a decent blueprint of success for a doctor at 50. Usually, most doctors will have been out of residency for 15-20 years by this point. If a typical doctor earns about $363,000 and saves 20% (roughly $72,600), they should be aiming for a retirement savings of about $1.5 to $2.5 million. Many should be quite close to financial independence by now. Ideally, student loans should be behind them, and the end of their mortgage should be on the horizon. If they have kids, there should be some savings for college, and they’re probably on a fast track to a comfortable retirement. They might feel some burnout and want to scale back, which is great—they can afford to do that. Or they could push through for another few years to retire early. The choice is theirs.
What if You Don’t Win at 50?
If you’re feeling okay about where you are mid-career, that’s fantastic. But if you’re not, don’t lose hope. The good news is, you’re still in a medium-term space in your career. If you’re a doctor in your 30s aiming to exit by 40 or 45, then someone who’s 50 and hasn’t saved could still potentially retire by 60 or 65. The math doesn’t change. Yes, maximizing income and cutting expenses is vital, but it’s within reach. You just have to be willing to make certain sacrifices to get there. Even those in their 60s with no savings can work longer and greatly improve their retirement outlook.
It’s not “too late,” but you might be surprised at how much can be achieved with five to ten years of dedicated effort, smart investments, and strategic delays in Social Security benefits.
What does victory at 50 look like for you? Do you think others see it as hopeful? If you’ve found yourself lagging, what would you do?
