A new, in-depth report from AMA Insurance shows that employed physicians — now comprising 59 percent of all American physicians — have their own set of personal financial challenges, in part due to their employment status.
KEY FINDINGS INCLUDE:
• Only 8 percent of employed physicians surveyed consider themselves ‘ahead of schedule’ in retirement savings. 42 percent consider themselves “behind where they’d like to be.” And 44 percent report they have less than $500,000 saved for retirement.
• Funding long-term care has emerged as a 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.
• Many employed physicians have disability and life insurance through their employer; it can present implications from a personal financial standpoint. As an example, half of employed physicians reported that their employer pays their disability insurance premiums. It’s important to understand that the benefits paid may be taxable income and could result in a shortfall.
• Over half of employed physicians surveyed use a professional financial advisor, and are more confident and on-track with their personal finances and retirement savings.
The report’s findings were taken from a national survey, conducted by AMA Insurance, of employed physicians primarily working in group practices, hospitals and medical schools. Topics included: retirement planning and savings, financial concerns, personal financial acumen, use of professional financial advisors, family finances, and disability and other types of insurance protection.