Research from the AAMC indicates a wave of physician retirements is coming. The surge of retirements — caused by an aging and burned-out workforce — could significantly impact the growing physician shortage. Fears abound surrounding what this means for the industry’s ability to care for growing populations. 

However, physicians have their own, more personal fears about retirement. From guilt about leaving patients to concerns about boredom and losing a sense of purpose, these fears weigh on the minds of physicians as they begin to consider retirement. A recent physician retirement study from Jackson Physician Search asked physicians what worried them most about retirement. Here, we’ll explore their answers and some options to put those fears to rest.

Physician Retirement Fear: Boredom

In the new study, 39% of physicians cited boredom as one of their retirement fears. After decades of devoting their lives to work, first in training, then in the service of patients, it may be difficult for physicians to imagine coming to a full stop in retirement. Perhaps this is why just 12% of physicians surveyed said they intend to retire and stop working altogether. This figure is down from 17% who said they planned to come to a full stop when we asked the same question in an earlier retirement survey back in 2019. 

What will they do instead? Most plan to transition to retirement slowly, cutting their hours over a period of years until they are comfortable with full retirement. However, some say they plan to retire from their current employer and work full (4%) or part-time (14%) with another employer. Still 12% plan to work locum tenens. These options allow the physician to keep one foot in the professional world, ramping up or down in response to any boredom they might feel. 

Physician Retirement Fear: Losing Sense of Purpose

Many physicians started medicine because they wanted to help others and make a difference in the lives of patients. Certainly, by the time physicians are considering retirement, they have touched the lives of countless patients. One might think they could hang up the white coats and rest easy knowing they have made a difference, and yet, according to our new survey, 44% of physicians fear they will lose their sense of purpose in retirement.

Physicians with this specific fear can find ways to continue to make a difference in retirement. From serving as a mentor to participating in medical missions, there are plentiful opportunities for physicians who want to give back. They may also want to explore opportunities in telehealth that would allow them to provide basic care for patients without ever reporting to a clinic, or they may find fulfillment in working part-time for a rural health organization. Paid or unpaid, there are multiple ways for physicians to get involved in their community after retirement. 

Physician Retirement Fear: Financial Stability

Physicians may earn more than the majority of the population, but they still worry about saving enough to maintain their current lifestyles in retirement. In fact, 53% of physicians taking the survey said they are worried about financial stability in retirement, making it the most common retirement concern among physicians. This ties into another finding from the survey: one in four physicians view financial stability as the catalyst for retirement. That is, they will retire as soon as they are financially independent.

Of course, how much is enough? The answer one gives at 45 may differ significantly from the answer given as he or she approaches the traditional retirement age. This may explain why, as physicians get older, the age at which they expect to retire gets older. The amount needed to feel financially secure tends to keep growing.

Avoid financial stress by keeping your license active in retirement. The security that you can go back to work if needed may calm your anxiety. Establish a relationship with a locum tenens staffing firm so that you can be placed quickly should you decide you need or want to earn additional income.  

Other Fears About Physician Retirement 

Only 16% of physician respondents said they have no concerns about retirement, while others wrote in responses such as health insurance concerns and fears about leaving a career that continues to bring them joy. And, of course, retiring from a medical practice in which you are a partner comes with other concerns, both logistical and personal. It may feel as though you are letting down both your patients and your colleagues as you plan your exit. A slow, gradual exit is likely the optimal way to make the transition, but some discomfort may still be inevitable.   

Change of any kind can be difficult, so it’s not surprising that physicians have concerns about retirement. Fortunately, multiple options exist to address the specific fear. From part-time or reduced hours for the physician worried about boredom to mission work and telehealth for the physician who needs to keep giving back, if physicians can find ways to stay professionally active in some capacity, it will not only serve to alleviate their retirement concerns, it may also ease the impact of retirements on the physician shortage, calming the fears of industry leaders as well.

No matter where you are in your physician career, the team at Jackson Physician Search is eager to share our knowledge about the current physician job market. Reach out today or start searching for physician jobs online now. 

Due to an aging and burned-out physician workforce, the healthcare industry expects to see a spike in physician retirements in the coming years. According to a report published by the Association of American Medical Colleges (AAMC), in 2021, nearly half (46.7%) of practicing physicians were over the age of 55. This means at least two of every five active physicians will reach the traditional retirement age of 65 in the next eight years. This, coupled with what we know about increasing physician burnout, makes it easy to see why the industry expects a spike in physician retirement trends to increase.

Are you among those considering retirement? Physicians of all ages typically have some idea of when they’d like to retire. According to a new report from Jackson Physician Search, the desired retirement age is trending younger. Another physician retirement trend noted in the report is that the traditional process of announcing one’s retirement and setting a date to make it official is no longer the norm. In fact, according to the report, only 12% of physician respondents plan to retire this way. 

So, how do physicians want to retire? The new report, “Preparing for the Wave of Physician Retirements,” reveals what today’s physicians want for their future retirements. If you are thinking about retirement — whether in the next few years or the distant future — you should know the current physician retirement trends and consider how they might influence your future retirement options. 

Physician Retirement Trends: Desire to Retire Earlier

Despite all the talk about the aging physician workforce, according to the study, many Baby Boomer physicians are still working full-time. However, among physicians under age 60, primarily Gen X, most report a desire to retire sooner rather than later. According to a 2021 Rural Physician Recruitment Whitepaper, Gen X physicians are more likely than Baby Boomers to report feeling dissatisfied with their levels of professional and personal fulfillment. So, perhaps it is not surprising that nearly 60% say they plan to retire before they turn 60 years old. Only 19% plan to work beyond the traditional physician retirement age of 65.

Despite the commonly held belief that one’s age drives the decision to retire, burnout is the reason one in four physicians in the study said they would eventually retire. Thus, the desire to retire younger is presumably driven by the fact that burnout, according to a joint MGMA and Jackson Physician Search study, is worsening among physicians year over year.

Takeaway: While it’s often the employment situation causing burnout, as a physician, addressing it early and transparently with your employer is the first step to resolving the issues contributing to burnout or those that eventually will. If you imagine yourself working a long career in patient care, mitigating burnout appears essential according to the report.

Physician Retirement Trends: Cutting Back Gradually

While many physicians express a preference to retire before the traditional retirement age, this may not be possible or even desirable when the time arises. Consider Dr. M, who, at 40, assumed he would retire by the time he was 60. But at 57, he has three kids in college, a beach house he’s still paying for, and he’s on the board (and heavily invested) in his niece’s start-up healthcare tech company. Retirement isn’t in his five-year plan — perhaps it’s not even in the ten-year version. And yet, like most physicians, Dr. M is burned out and isn’t sure how much longer he can sustain his current level of work. He’s not ready to hang it up just yet (nor will his bank account allow it), but surely, there’s a way to lower the intensity and keep working. 

Dr. M isn’t alone in the desire to work less. According to the data on physician retirement trends, physicians as early as 50 are beginning to cut their hours and slow down, and the percentage of physician respondents who report working part-time increases significantly with age.  

In the Jackson Physician Search study, physicians were asked what, if anything, would make them delay full retirement and keep working in some capacity; 58% said part-time work, and 52% said schedule flexibility. When asked how they hoped to transition to retirement, 43% said they hoped to reduce their work hours in the years leading up to retirement. 

Takeaway: The aging population has increasing healthcare needs, and many employers recognize that a part-time physician is better than no physician at all. Employers should be more willing to accommodate, and even encourage, flexibility and part-time schedules in order to prolong the transition to retirement. Even if your employer doesn’t currently have part-time physicians, it pays to ask what options might exist for you. 

Physician Retirement: Finding Work Elsewhere

In an article for HealtheCareers, Michael Dill, AAMC senior data analyst and director of Workforce Studies, explains that physicians aging out of the workforce aren’t retiring as much as they used to, but rather, they are moving to different jobs within the industry. He says the Great Resignation may be more of what economist Paul Krugman calls a great “migration.” 

This supports the findings of the Jackson Physician Search study, in which nearly a third (30%) of physician respondents said they plan to retire from their current job and work locum tenens or full- or part-time with other organizations. 

For Dr. M, this might mean he takes a job consulting for his niece’s start-up. Or it could be that he works part-time at the rural clinic near the mountain house he and his wife are building. Perhaps he pursues a teaching position at a local college, or he develops a relationship with a locum tenens staffing firm and works sporadically when he has availability. 

Takeaway: Even after physicians fully retire, they still have a variety of professional options available to them. Physicians who want to continue to contribute are sure to find organizations happy to accept whatever parts of themselves they still want to give. This is the time in your career when you can follow a passion, step into a mentoring role, or work locums to allow for more travel or time with family.   

Evolving Physician Retirement Trends

Physician retirement has evolved. While the traditional process of choosing a date, having a party, and hanging up the white coat is still appealing for some, many physicians are exploring their options, including part-time work, reduced hours, locum tenens work, or career shifts to teaching or consulting. Perhaps these options would have always been appealing to physicians, but only now, when employers are facing a shortage and desperate to keep physicians working in some capacity, are these options readily available. 

Are you interested in exploring the career options available to you? Whether you are nearing the end of your physician career or just beginning, the team at Jackson Physician Search has the experience and expertise to help you navigate the next chapter. Reach out today to find out how we can help. 

Are you one of the many physicians expected to retire soon? According to a 2021 report published by the Association of American Medical Colleges (AAMC), more than two of every five physicians will reach age 65 within 10 years. But of course, retirement isn’t driven by age alone; factors such as physician burnout and decreasing physician job satisfaction are likely to increase an already high volume of physician retirements projected in the coming years.  

Recent data from a Jackson Physician Search and MGMA study supports the claim. In the survey, 43% of physicians said, over the past year, they had considered taking an early retirement and an October 2021 MGMA STAT poll found one in three medical practices saw a physician leave or retire early in 2021 due to burnout. 

Physicians certainly have reason to feel burned out. Even before the COVID-19 pandemic, physicians were dealing with long hours, administrative burdens, lack of autonomy, and productivity pressures. Like so many things, COVID-19 only intensified these existing problems. However, if burnout is the problem, is retirement really the solution? For some, the answer may be “yes,” but before you make this life-changing decision, you may want to ask yourself the following questions and consider a few physician retirement alternatives.  

If My Work Circumstances Improved, Would I Still Want to Retire?

Many of the headlines about physician retirement aren’t focused on an aging physician workforce, but rather, how the stress of COVID-19 and other forces have increased physician burnout, resulting in an unexpected spike in retirements. Is burnout at the root of your retirement plans? If so, would you reconsider if your circumstances improved? 

Consider Dr. J, an Emergency Medicine physician who spent his career working at a Manhattan hospital. He always felt his intense personality was well-suited to the high-stress job, but the COVID-19 pandemic brought the stress to a level even he found impossible to manage. Nevertheless, he powers through each day, triaging patients. Now, at just 54, he is considering retirement. Even if the worst of the pandemic is over, the way he feels about the job and the whole organization has changed. He has given everything to his work, and now, he simply has nothing left to give. 

It’s understandable that Dr. J would feel this way. However, he may be making a decision based on the extreme circumstances of the past two years. Before he ends his career early, it is worth exploring the question, “If my circumstances improved, would I still want to retire?”

Dr. J may feel he’s been through too much to continue with his current employer. Retirement seems like the most logical option. After all, he’s closer to the end of his career than the beginning, and thanks to smart financial planning, it’s a viable option. On the other hand, perhaps Dr. J simply needs time to recover from the trauma he’s endured in recent years. Instead of retirement, his employer may be willing to offer a sabbatical to give him time to rest and reflect on the positive aspects of practicing medicine. Management may also be open to making changes that would improve physician job satisfaction in the department and improve physician retention. 

If your current circumstances are unlikely to improve, it may be time to look for a new physician job–perhaps in a rural location. According to a Rural Physician Recruitment study from Jackson Physician Search and Locum Tenens, “improved work-life balance” is the most common reason rural physicians say they decided to practice rural medicine. Rural physicians are also more likely to say their organization is “patient-focused.” The autonomy, flexibility, and slower pace of life reported by many rural physicians could be exactly what you need to renew your love for practicing medicine.

Alternative #1: Change Your Circumstances / New Physician Job

Approach your manager to discuss your feelings of burnout and propose options for improving current circumstances. If they are unable or unwilling to make changes, you may want to connect with a physician recruiter to learn about other physician jobs that might rekindle your desire to practice. 

Would My Employer Support a Partial Retirement or Other Alternatives to Full Retirement?

According to a 2019 JPS retirement study, only 17% of physicians surveyed said they planned to take a full retirement, and nearly a third said they intended to continue working part-time. In the same study, administrators estimated 40% of their retiring physicians wanted to take full retirement. This indicates a disconnect between what physicians want and what their employers expect. However, in light of the physician shortage, most employers would be happy to take whatever level of work they can get from their physicians. This may be especially true in rural areas.    

Consider Dr. G, a Family Medicine physician who has spent the last 20 years working in a rural hospital treating patients of all ages and ailments. He moved his family to the small community when his kids were young, but now, they’ve grown up and started their careers in bigger cities. As he nears retirement age, he and his wife discuss their plans to travel more and perhaps move to be nearer the kids. He knows it’s time to stop working so much, but is he ready to stop working altogether?

For Dr. G, a partial retirement seems like the ideal option, one that his employer may indeed be willing to entertain. Whether it means simply cutting his hours, job sharing, or adopting telemedicine, Dr. G should initiate a discussion with his employer to discuss how those options might work for them. 

Alternative #2: Part-time Physician Job

Don’t be afraid to approach your employer about your desire to work less. They will likely be happy to hear you want to keep working in some capacity. Start the conversation early and keep an open mind as you discuss your options. If your current employer can’t provide what you need, enlist a national physician recruitment firm to help in your part-time physician job search. 

What Will I Do With My Time Post-Retirement?

Physicians spend countless hours training to practice medicine, and once certified, they often devote 50-60+ hours per week to the job. If anyone has earned the right to put their feet up and relax in retirement, it’s physicians. And yet, this hard-working, high-achieving group often has a difficult time coming to a full stop after devoting so much time and energy to their work for so long. 

Consider Dr. L, as Chief of Surgery at a busy suburban hospital, she can’t remember a time in her life when she wasn’t working towards a goal–first medical school, then residency and fellowship, her first job, and then slowly climbing the ladder to her current position. She had achieved success at every step of her plan, and the next step, thanks to savvy financial planning, was retirement at 60. By retiring relatively early, Dr. L intends to really enjoy her retirement, but will she succeed with this plan too?

Though Dr. L may not admit it–she may not even be aware of it–it’s likely she holds some unconscious fears about what exactly “enjoying retirement” will look like for her. Before making the decision, she should think through exactly what she will do with her time post-retirement. Perhaps she has a plan for a “second act,” a business venture, teaching opportunity, or non-profit work. However, she might also consider keeping her license active so she can pursue locum tenens assignments or even medical mission work–abroad or in one of the many healthcare deserts across the US. 

Alternative #3: Locum Tenens 

Make sure you know what you need to do to keep your license active in the first years of full retirement. If or when the initial excitement of retirement wanes, you may want to explore locum tenens jobs through our sister company LocumTenens.com. 

Retirement is a big decision and it’s never too early to start planning. Whether you’ve been dreaming about your retirement for years or you are just starting to think through the idea, a Jackson Physician Search Recruitment Consultant can help you understand your options as you transition to retirement. Contact us today.

For many physicians pondering retirement, age itself isn’t the number one driver of their desire to continue practicing medicine. Rather, they feel deeply drawn to care for their patients for as long as they’re willing and able, while others plan to reclaim those years “lost” to med school, residency, and fellowship by retiring as soon as possible to enjoy life. Whether or not you decide to retire early or retire late, the volume of physicians nearing this stage of life has never been higher.

According to a 2020 report published by the Association of American Medical Colleges (AAMC), 45% of practicing physicians are over 55. This means more than 2 of every 5 active physicians will be over 65 in the next decade. With 65 the reported median physician retirement age, this would suggest nearly half of all physicians who are currently practicing will be retired by 2030.  However, this may be a conservative estimate. According to a 2019 study published by AMA Insurance and highlighted by the American Medical Association, 30% of physicians retire between the ages of 60 and 65 and 12% retire before the age of 60. These looming retirements are one factor contributing to the much-discussed physician shortage.

You’ve heard it before, the aging Baby Boomer population combined with a significant percentage of physicians at or nearing retirement age amounts to an upcoming physician shortage of a magnitude for which no one has adequately planned. And now, COVID has introduced yet another factor likely worsening (or at least, speeding the arrival of) the shortage.

According to a 2021 Jackson Physician Search Whitepaper: On the Verge of a Physician Turnover Epidemic, the COVID-19 pandemic has made half of today’s physicians reconsider their career plans. Of those, 21% of physicians are considering early retirement and another 15% are considering changing professions altogether. A March 2021 poll conducted by MGMA appears to confirm the trend. In the poll, 28% of healthcare administrators said a physician at their organization had unexpectedly retired in the past year.

The pandemic has certainly placed a strain on physicians, but it has only fanned the flames of an already significant physician burnout problem. Pre-COVID data found 44% of physicians experienced burnout, and more recent studies suggest the pandemic has exacerbated the problem. To what degree does burnout cause physicians to retire early? And what other factors contribute to early retirements? On the other hand, some physicians may have delayed retirement due to the pandemic – citing economic instability or logistical concerns. Others felt a heightened sense of obligation to their patients or to the broader community during these troubling times.

This article will explore the factors contributing to both early and late retirements and perhaps help you identify with which path you are aligned.

What Causes Physicians to Retire Early?

COVID-19

As noted above, stressful circumstances – such as a global pandemic – certainly contribute to physician retirement decisions. Beyond the stress and burnout caused by the pandemic, personal health concerns were also a common factor, especially for older physicians who were at a higher risk of severe illness and death from the new virus. In an October 2020 article, the Washington Post featured several physicians for whom this was the case. Whether driven by their own fears or the fears of loved ones, these physicians opted to retire rather than put themselves at risk.

Stress and Burnout

While these stories are not uncommon, it’s rare for a single event to evoke such a response. More often, it’s the ongoing stress experienced by physicians that drives them to retire early. In looking at the AAMC data on physician age by specialty, several of the specialties noted to have high levels of burnout, such as critical care and emergency medicine, have a lower percentage of physicians practicing over 55 (21% and 35%, respectively) compared to the average for all specialties (45%). So, one might conclude physicians working in high-stress fields are more likely to retire early.

Financial Readiness

Perhaps most importantly, physicians make retirement decisions based on their perceived financial preparedness for this next stage of life. Of course, as discussed in an article for Medical Economics, financial readiness is largely subjective – that is, the figure required to retire comfortably depends on the level of comfort one requires. Still, median physician salaries are considerably higher than the national median, so even after factoring in hefty student loan debt, some physicians will reach financial readiness at a younger age and may therefore opt to retire early.  Physicians in the highest-earning specialties may reach this stage even earlier.

Obligations

Being financially ready to retire doesn’t mean you have to retire or even want to retire. However, sometimes early retirement is forced upon you. Physicians may find themselves facing health challenges that force them into early retirement, or they may feel obliged to retire to care for a parent or spouse in poor health.

Future Plans

Some physicians retire from medicine early to pursue a “second act,” be it a new business venture, a teaching career, or non-profit work. Physicians are highly driven individuals, and once they achieve success in their given field, they may be drawn to pursue a new challenge. While the movement to achieve “financial independence and retire early” (FIRE) is not unique to physicians, it has received significant attention. An article for HCP Live outlines how the FIRE idea impacts different types of physicians.

Why Do Physicians Delay Retirement?

While there is much discussion about the impact of physicians retiring early, if the AMA Insurance report is correct, 58% of physicians will retire after 65. So, what causes physicians to extend their careers? At a high level, the answers look oddly familiar.

COVID-19

While some physicians took the pandemic as a reason to retire early, others saw it as a reason to put retirement plans on hold. Some felt a sense of obligation to patients in need, some worried about how economic instability would impact retirement funds, while others knew the logistics of selling a practice or recruiting their replacement would be next to impossible during a pandemic.

Stress

While high-stress physician jobs can certainly drive a physician into early retirement, the stress of retirement planning may cause some physicians to put off retirement indefinitely. This is especially true for physicians who own a practice and must address additional details of retirement planning such as selling their stake and transitioning long-term patients. Primary care physicians, who cultivate relationships with patients over the course of a lifetime, may find the concept of transitioning patients to a new provider particularly difficult.

Financial Readiness

The aforementioned Medical Economics article notes that while physicians’ affluence allows them to save more than the average working professional, many of them also spend more – and will likely continue to do so in retirement. Thus, the “magic number” that a physician feels he or she needs to save in order to retire comfortably will likely be relatively high, and depending on how much of their income they are able to save for retirement, it may take longer to achieve it.

Obligations

According to a systematic review of 65 retirement studies, published by Human Resources for Health, one of the primary reasons physicians delay retirement is out of concern for their patients. They may also feel a broader moral obligation to provide care to communities in crisis – either due to the global pandemic, a physician shortage, or other difficulties – leading many to work past retirement age or even come out of retirement to serve.

 Future Plans

The hardworking, high-achieving individuals who pursue physician careers don’t achieve their goals by sitting around and relaxing, and many physicians approaching retirement age have no desire to start now! They can’t imagine a future without work in some capacity. In fact, a 2019 retirement survey conducted by Jackson Physician Search, found nearly a third (28%) of respondents planned to continue working part-time post-retirement. Only 17% expected to take full retirement. As long as they are able, they will practice medicine.

Regardless of physicians’ reasons for retiring, the looming mass exodus could not come at a worse time. The most recent AAMC study on the physician shortage projects a deficit of 37,800 to 124,000 physicians by 2034. That shortage includes shortfalls of 17,800 to 48,000 primary care physicians and 21,000 to 77,100 specialists.

What does this mean for physicians approaching retirement? Are you morally obligated to keep working? Breathe easy. According to AAMC President and CEO David J. Skorton, MD, the multi-pronged solution doesn’t rest on aging physicians, but rather, it starts with educating and training enough new physicians to meet the increasing demand, diversifying the physician workforce, and improving the nation’s preparedness for future public health crises.

That said, while the problem cannot be solved at an individual level, physicians who worry about boredom or losing their sense of purpose post-retirement may want to consider ways to continue to provide care in some capacity – via telemedicine or significantly scaled back hours – as long as they are willing and able. Your community will thank you. And to those who are ready to hang up the white coat for good, you too should be thanked for your service and wished well in retirement!

If you are approaching retirement and looking for a job opportunity that allows for more flexibility as you make the transition, a conversation with a Jackson Physician Search recruiter may be just what you need. Contact us today or search our open positions now.