The Pros and Cons of Retiring Early for Medical and Dental Professionals

Once their degrees are earned and jobs are secured, many doctors and dentists find themselves on the fast track to some major financial goals -- including, perhaps, early retirement. After all, between those extra years of studying and the daily demands of working in medicine, doctors and dentists might feel like they've worked a full career well before they hit their 60s.

If you're considering adding early retirement to your $Lifeline, discuss these pros and cons with your spouse and your Life-Centered Financial Planner.

1. You're burned out ... But are you done working?

The 2020s have been hard on medical professionals. We're still grappling with the physical and emotional toll of working through COVID. Technology and government regulation are both changing how doctors work and what kind of care patients expect. And a broadening awareness of mental health issues is forcing doctors and dentists to think beyond money as they assess work-life balance.

For some medical professionals, early retirement may indeed be the best solution to these and other issues.

But doctors and dentists who can still feel their professional passion buried under all that stress and anxiety might consider alternatives, such as taking a sabbatical, scaling back office hours, or transitioning to less stressful teaching roles.

If you have the means to retire, you might also have the means to start your own practice where you can set your own schedule and build an energizing professional culture.

2. You want more free time ... But how will you spend it?

Retirees of all ages often discover that not working can be just as exhausting as working.

After a few “endless weekends” on the couch, boredom sets in.

Weekend golfers and tennis players find that playing every single day isn’t as fun as it sounds.

Most friends and family members who are the same age are still busy working and raising their families.

Spouses who aren’t used to spending the bulk of their days together can feel the walls shrinking. And a spouse who is still working might feel resentful.

Whether you retire at 55 or 75, the most successful retirees retire TO something, not just FROM work. Our Ideal Week in Retirement tool could help you visualize a new schedule that will fill your days with purpose, fun, and opportunities for growth.

3. You have enough money ... But is it really enough?

According to a recent survey, nearly 70% of Malaysian doctors in their 40s plan to retire in their 50s or early 60s. Many of them have likely cleared most of their debts and built a comfortable savings cushion.

However, while more professionals in the medical field see 50 as the new 60, the Malaysian government’s retirement system doesn’t quite align with that idea.

EPF (Employees Provident Fund) withdrawals are only fully accessible at age 55, and while partial withdrawals are possible earlier, taking them too soon can reduce your long-term retirement income.

Unless you’re covered under your spouse’s employment benefits, you’ll also need to budget for private medical insurance until you qualify for government healthcare assistance at retirement age.

Even if your savings look solid now, the rising cost of living in Malaysia will continue to eat into your purchasing power.

And as life goes on, unexpected expenses from home repairs to medical bills which can easily disrupt even the most careful financial plans.

If your return on life (ROL) from work isn’t matching your return on investment (ROI), let’s meet to review whether early retirement fits your goals and explore possible adjustments to your Life-Centered Financial Plan.