A new study has found that a large chunk of the physicians in America are unable to meet their retirement goals and they are behind schedule with regard to retirement benefits savings. Those who are better prepared for retirement and are ahead of schedule say that they have better knowledge of financial matters. They also have better financial health and confess to the fact that they make use of the services rendered by financial advisors.
Being Behind the Schedule for Retirement Benefits Savings
A study conducted by American Medical Association Insurance that was entitled 2016 study on physicians’ financial preparedness found out that the percentage of American Physicians who said that they were ahead of schedule in their retirement plans from 2013 to 2016 has doubled. It went from 6 percent to 11 percent. Unfortunately, the same study has found that about 40 percent of American physicians admit to being behind schedule when it comes to retirement benefits savings.
The study was conducted in about 125,000 practicing physicians. They had varied age, employment situation, and specialty. It discovered that physicians can be financially prepared for the retirement at any age so age is not a valued factor. It stated that 7 percent of physicians who are on their 30s are ahead of schedule. It added that 11 percent of physicians in their 40s and 13 percent in their 50s were also ahead of their retirement schedule.
Being Financially Educated
The researchers found that the physicians who were financially prepared were eight times more likely to claim that they have better knowledge on financial matters such as insurance, investing, retirement planning, etc as compared to the physicians who admitted to being behind their retirement schedule.
About 67 percent of physicians who claimed that they are ahead of the retirement schedule said that they took the assistance of a financial advisor than 44 percent of physicians who are behind.
Better Financial Health
The physicians claiming that they are ahead of the retirement schedule and have better retirement benefits savings also have more money saved as compared to other physicians in their age and career stage. They also max out their qualified retirement plan contribution, have fewer debts, have the real estate plan well-defined and have more diversified investments. On the whole, they have better financial health.