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2015 Report on U.S. Physicians’ Financial Preparedness: Young Physicians Segment
The 2015 Report on U.S. Physicians’ Financial Preparedness: Young Physicians Segment paints a clear picture of the financial challenges young physicians face. They typically begin their first year of practice 10 years behind their undergraduate peers in other professions, having lost an estimated $71,000 in potential savings1 during those years of training. Then, as their income builds with a maturing career, so do their family responsibilities, and added to that, many are paying off a medical school debt of $150,000 to more than $200,000.2
Young physicians cite their top personal financial concern as having enough money to retire followed by funding their children’s education – but they often have minimal savings. In short, they are at a financial crossroad as they jump-start their career.
Despite these challenges, the report sheds light on opportunities for young physicians - offering insights and advice from financial planning professionals and words of wisdom from established physicians, all designed to help young physicians gain a strong financial foothold in their early years of practice.
OTHER KEY FINDINGS ABOUT YOUNG PHYSICIANS:
- WORK: 79 percent of physicians under 40 are employed
- HOME AND FAMILY: 75 percent are married; 60 percent are working parents
- FAMILY FINANCES: 78 percent are their family’s primary breadwinner, earning 75 percent or more of their family’s total income
- Less than 25 percent have an updated will, power of attorney, and medical and end-of-life directives
- FINANCIAL ACUMEN: 50 percent use a professional financial advisor; and those that do are ahead of the other half in savings, emergency funds, use of retirement tools, and sense of confidence
- RETIREMENT: 41 percent have less than $100,000 in retirement savings
- An additional 41 percent have between $100,000 - $500,000 in retirement savings
- INSURANCE PROTECTION: Only 11 percent feel ‘very prepared’ in the event of a disability; 76 percent believe disability insurance is essential
The report includes insights gleaned from three national AMA Insurance studies representing 1,937 respondent physicians under age 40. It includes two special sections: Five Strategies for a Strong Financial Foothold and The Advisor Advantage for Young Physicians.
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