Every practicing physician has thought about retirement, particularly in this unprecedented Covid era. Between 2017 and 2021, there has been a 9% drop in psychological well being{1}. In fact, 49% of working Canadian MDs had “high levels of emotional exhaustion” on the Maslach Burnout Inventory, up 24% from 2017{1}.
The average age of Canadian MDs in 2021 was 49.2 years old (51.7 males, 46.1 females){2}. There is no significant difference in the specialty of the physician when it comes to retirement age{3}. Since the median age of retirement is 65 years old3, many of us would be in the “pre-contemplation”, “contemplation” or “preparation” stage (to borrow terminology from the five stages of quitting smoking). While retirement provides more time for leisure activities and personal development, there can be a significant impact on your financial situation, professional identity, and overall well-being. Here are some key factors to consider if you are contemplating retirement:
Financial readiness: The average Canadian will live another 18.8 years if they retire at 65{4}, but to be on the safe side, most experts will suggest planning on having enough money for travel, education, and leisure to reach 100 years old. You need to evaluate your retirement savings, insurance coverage, and any other sources of income such as social security and pensions. A financial advisor can gauge your situation and create a retirement plan to aligns with your needs and goals. They can also help with tax-planning and a logical strategy to liquidate investments to fund your day-to-day life. A lawyer can assist with estate planning to ensure that your children and grandchildren are taken care of long-term.
Professional identity: Being an MD is probably one of the first things that comes to mind if you are asked to describe yourself. Retirement may impact your sense of purpose, as well as social connections you have within the medical community.
Health and well-being: Retirement will change your routine and can impact your physical and mental health. It is vital to maintain a healthy lifestyle and social connections, including exercise, pursuing hobbies, and staying connected with friends and family.
Legacy and impact: Many physicians have a desire to leave a positive impact on both their profession and their community. This can continue post-retirement in the form of mentoring or teaching future generations, or volunteering for organizations consistent with your values.
Housing and family: Retirees often downsize or make changes to their living situation. Moving to another town or country can have major implications for the family, especially if caring for aging parents or children/grandchildren is part of your plans. It is important to consider retirement as a family decision.
Retirement is a huge decision that requires expert advice and careful consideration of a wide range of factors but will (hopefully) lead to a fulfilling and financially secure future. One last major element to think about is succession planning. Who will take care of your patients when you cruise off into the sunset? Maybe SMP can help with – please contact us.
Author: Dr. Krishna Sharma, Chief Medical Officer, Specialty Medical Partners
References:
CMA 2021 National Physician Health Survey
Canadian Institute for Health Information
Hedden L, et al. Patterns of physician retirement and pre-retirement activity: a population-based cohort study. CMAJ 2017 189(49) E1517-E1523.
Statistics Canada, Life expectancy at various ages 2015
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