The Early Retirement Dream: Why Most Doctors Want Out — But Can’t Leave Yet

Ask any physician under 40 when they hope to retire, and there’s a good chance they’ll say “early 60s,” maybe even earlier. The dream of retiring young, traveling, and living life outside the hospital walls is becoming more common among younger doctors.

But here’s the harsh truth: most physicians won’t retire when they want to.

Recent survey data in the Medscape Physician Mental Health & Well-Being Report 2025 reveals that while half of doctors under 40 envision early retirement, many in their 50s and 60s expect to work well into their 70s.

So what’s driving this disconnect?
And more importantly, how can you avoid that same fate?

Let’s explore what the data says, why retirement is so elusive for many, and what you can do to create true freedom as a physician.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Any investment involves risk, and you should consult your financial advisor, attorney, or CPA before making any investment decisions. Past performance is not indicative of future results. The author and associated entities disclaim any liability for loss incurred as a result of the use of this material or its content.

What the Data Reveals About Physician Retirement

This national survey of over 7,300 full-time practicing physicians across 29 specialties, conducted from October 2024 to January 2025, found the following:

• 50% of physicians under age 40 say they plan to retire before their mid-60s
• Nearly half of those in their 50s and 60s expect to work into their late 60s or even 70s
• 42% of doctors in their 60s said they’ll retire in their 70s

That’s a major shift in expectations, and it raises the question: what’s changing between these generations of doctors?

Why So Many Doctors Want to Retire Early

It’s not hard to understand why early retirement sounds appealing.

Physicians today are facing:

• Record levels of burnout
• Endless EMR documentation
• Increasing administrative burdens
• Declining autonomy in patient care
• A growing sense that “medicine isn’t what it used to be”

But early retirement isn’t just about escaping burnout.

For many, it’s about freedom:

• The freedom to spend more time with family
• The ability to pursue passions outside of medicine
• The option to work on your terms: part-time, telemedicine, consulting, or not at all

It’s not that physicians want to stop working entirely. They just want the choice.

Why Most Doctors Can’t Retire Early

So what’s holding so many physicians back?

Here are the top five reasons doctors delay retirement:

1. Student Loan Debt

Many physicians finish training with $300,000 or more in loans, which delays financial stability for years.

2. Golden Handcuffs

As income increases, lifestyle often does too. Big homes, private schools, luxury cars… all of it can lead to financial obligations that keep doctors locked into high-income clinical work.

3. Lack of Financial Education

We’re trained in anatomy and pharmacology, but not in wealth-building. Many physicians have no clear plan or target for retirement.

4. Reliance on Clinical Income

When your income is tied entirely to your time, stopping work means the income stops too. That’s not financial freedom, that’s dependence.

5. Fear of Change

Even unhappy physicians often stay in medicine out of fear. Fear of failure, judgment, or not knowing what else is out there.

Sound familiar?

Here’s the Twist: It’s Not Always About Money

While financial barriers are real, not all doctors working into their 60s and 70s are doing it out of necessity.

According to the same survey:

• 62% said they still feel they have more to contribute
• 37% said “medicine is my passion”
• 27% said it’s part of their identity
• Only 46% cited financial shortfall as the reason they haven’t retired yet

That’s powerful.

The goal isn’t necessarily to quit. It’s to have the freedom to practice with purpose.

Redefining Retirement: It’s About Freedom, Not Stopping

Retirement for physicians doesn’t need to mean never working again.

It can mean:

• Shifting to part-time
• Volunteering or doing mission work
• Starting a business in or out of medicine
• Consulting or mentoring
• Choosing how and when you practice

To unlock those options, you need one thing: financial freedom.

And financial freedom comes from building income that isn’t tied to clinical hours, such as passive or scalable income.

How to Start Moving Toward Financial Freedom

If you’re dreaming of early retirement or just more freedom in your career, here’s how to get started:

1. Get Clear on Your Goals

• What’s your ideal life?
• When do you want to retire?
• How much income would you need to live that way?

2. Build a Strategic Plan

• Calculate your financial freedom number
• Learn about passive income strategies
• Find a model that fits your lifestyle and risk tolerance

3. Take the First Step

Every small step builds momentum. Momentum leads to freedom.

Final Thoughts

Most doctors dream of retiring early, but few actually do.

Not because they can’t — but because they don’t take the steps to make it happen.

Whether you want to retire at 55, cut back to part-time, or practice medicine with more joy and purpose, it’s all possible.

You just have to take ownership of your financial future.

Ready to Take Action?

👉 Subscribe to our newsletter for weekly strategies on building passive income as a physician
👉 Check out the Passive Real Estate Academy, where we help doctors create true financial freedom
👉 Explore more at PassiveIncomeMD.com for tools, stories, and a roadmap to reclaim your time and income

Were these helpful in any way? Make sure to sign up for the newsletter and join the Passive Income Docs Facebook Group for more physician-tailored content.

Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.

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