Ask a physician how their finances are going and you will hear about income. Ask what they build wealth with and the honest answer is their savings rate — the share of income they keep and invest. It is the one number most in your control, and the one that best predicts where you land.
The number to beat: 20%
A widely cited baseline is saving 20% of gross income for retirement. For physicians, 20% is a floor, not a goal — a late start and higher lifestyle costs mean that 25–30%+ is often what it takes to retire comfortably and on time. The encouraging part: on an attending income, a high savings rate is compatible with a genuinely good life, as long as you set it before lifestyle expands.
Targets by stage
- Resident/fellow: Even 5–10% plus capturing any match builds the habit and starts the compounding clock. Roth contributions in low-income training years are especially valuable.
- New attending: This is the decisive window. Before you inflate your lifestyle, lock in 20–30%. Physicians who set their savings rate in year one, then let spending rise slowly, win.
- Established attending: Push toward 30%+ if you started late or want to retire early, using every tax-advantaged account available.
Where to save, in order
- Capture the full employer match in your 401(k)/403(b) — it is an instant return.
- Max the 401(k)/403(b), and a 457(b) too if your employer offers one (many hospital-employed physicians can use both).
- Backdoor Roth IRA each year for you and a spouse.
- HSA if you have a high-deductible plan — triple tax advantage.
- Taxable brokerage for everything above that, invested simply and left alone.
Why the percentage beats the dollar amount
Two physicians can each save $40,000 a year. The one earning $250,000 (16%) and the one earning $500,000 (8%) are on completely different paths, because the second is quietly spending an enormous amount. Tracking the rate — not just the balance — keeps lifestyle creep visible and honest.
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Open the calculator →Frequently asked questions
How much should a physician save each year?
A floor of 20% of gross income, but 25–30%+ is often what it takes for physicians given a later start and higher lifestyle costs. Set the rate as a new attending, before lifestyle expands.
Where should a physician save first?
Capture the full employer match, then max your 401(k)/403(b) (and a 457(b) if offered), then a backdoor Roth IRA, then an HSA if eligible, then a taxable brokerage for the rest.
Should residents save for retirement?
Yes, even a small amount. Contributing during low-income training years — especially to a Roth — starts compounding early and builds the habit. Always capture any employer match.
Is saving 20% enough for a doctor?
It is a reasonable floor, but many physicians need more because they started saving later and have higher spending. A savings-rate calculator can show what your specific percentage means for your retirement date.
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Book your 15-minute checkupThis article is educational and not individualized financial, tax, or legal advice. Rules change; confirm specifics for your situation with a qualified professional.