What do you imagine your life to look like at 65 years old?
According to The Ultimate Dentist's Handbook, 89% of dentists will not retire with the same income they had while they were actively practicing. For many dentists, their retirement income will be significantly less.
After investing years and tens of thousands in to dental school, it's unsettling to consider that a dentists financial future isn't assured. So what is the difference between the majority of dentists and the 11% who retire comfortably? It's simple: financial responsibility.
It comes down to more than just lifestyle expenditures: a shiny new car is one thing, but how deeply do most dentists weigh the pros and cons of leasing versus purchasing a building for their practice? Are they leveraging their payroll expenditures in to a company-sponsored retirement plan? How often do they upgrade their equipment? What is their return on investment for marketing spend? Having thoughtful answers to all of these questions – and more – constitutes financial responsibility.
While practices with lower production certainly have more to worry about in terms of the long-term sustainability, even practices booming with success don't guarantee the future of the dentist running it.
How are you looking out for your financial future after retirement?
