Financial Preparedness

New national report points out unique set of financial challenges of employed physicians

October 16, 2014

How do today'™s employed physicians fare financially? The latest national study from AMA Insurance clearly shows that as a group, employed physicians have their own unique set of personal financial challenges, in part due to their employment status.

This outcome and related findings are presented in the 2014 Report on U.S. Physicians' Financial Preparedness & Segment Focus: Employed Physicians, released this week. An update of the 2013 Report, it delves more deeply into questions related to retirement planning, personal financial acumen, family finances, and insurance protection. More than 2,000 employed physicians shared their personal information to help compile an in-depth look at this growing physician segment.

Retirement and other concerns help define employed physicians as a group

While the Report offers a host of intriguing survey results, there are a few key insights that help define this group from a personal financial perspective. They include the following points:

  • Retirement comfort is the top financial goal and retirement savings is the top financial concern. Forty-two percent (42%) of the respondents are behind in retirement savings; across all ages, 44% report they have less than $500,000 saved for retirement. Retirement is the number one financial concern of all physicians.
  • Funding long-term care is a new top financial concern. Sixty-five percent (65%) are concerned about funding long-term care expenses; and one-third of all employed physicians are unsure how they will pay these expenses.
  • Insurance coverage typically offered by employers can present implications from a personal financial standpoint. Typically employers fund some or all of an employed physician's benefits, including insurance protection. For example, half of employed physicians reported that their employer pays their disability insurance premiums. It'™s important to understand that the benefits paid would likely be taxable income and could result in a shortfall.
  • Over half of employed physicians use a professional financial advisor. The 57% of employed physicians who use the services of a professional advisor are more confident and on-track with their personal finances and retirement savings.

Details on these insights and more are found online in the complete 2014 Report on U.S. Physicians' Financial Preparedness & Segment Focus: Employed Physicians.

We invite you to review it and comment, and encourage you to share both the blog and the Report with your colleagues.  

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