Short answer: most dentists need roughly 25 times their annual retirement spending saved to retire comfortably — the “4% guideline.” If you expect to spend $200,000 a year, that’s about $5 million. Notice what drives it: your spending, not your income.
How do you calculate your retirement number?
Start with the number that matters: how much you expect to spend per year in retirement. Multiply it by about 25 (the inverse of a 4% withdrawal rate). That’s a rough target for the portfolio needed to fund that spending for a long retirement, before accounting for Social Security, a practice sale, or other income.
| Annual retirement spending | Approx. target portfolio |
|---|---|
| $120,000 | ~$3.0M |
| $200,000 | ~$5.0M |
| $300,000 | ~$7.5M |
| $400,000 | ~$10.0M |
Why do dentists retire later than average?
The average dentist retires around 69, versus about 62 for the general population. It’s rarely because they love the drill that much — it’s usually because the number wasn’t planned early, wealth was concentrated in the practice, or a late start and student debt compressed the saving years. Knowing your number early is what turns “I can’t afford to stop” into “I work because I choose to.”
What moves your number the most?
- Future spending — every $10k/year of spending you can trim reduces the target by ~$250k.
- Savings rate now — especially in your compressed peak-earning years.
- A practice sale — proceeds can be a meaningful piece, but shouldn’t be the whole plan.
- Investment discipline — avoiding big mistakes matters more than chasing returns.
What about a practice sale?
A practice sale can fund part of your number, but treating it as your entire retirement plan is risky — value isn’t guaranteed and it’s illiquid. The strongest plans build independent wealth so the sale is a bonus, not the plan. Use our valuation calculator for a ballpark of that piece.
Frequently asked questions
It’s a planning guideline, not a guarantee. It’s a reasonable starting point for a rough target; a real plan stress-tests different markets, spending changes, and timing rather than relying on a single rule.
Partly — proceeds from a sale can contribute — but its value is uncertain and illiquid, so it’s risky to rely on it entirely. Building diversified wealth alongside the practice is the safer path.
No — your number is driven by spending, not income. A higher income only helps if you convert it into savings rather than lifestyle.
Sources
Founder & Financial Planner · Investment Adviser Representative · Series 63 & 65
Ian McGinnis is a financial planner and founder of Dental Wealth Partners, a non-commission, fee-only financial planning firm for dentists. He is the author of The Wealthy Dentist: Smarter Money. Less Stress. More Life. and hosts the Smiles & Cents podcast.
Keep reading
- How much should a dentist have saved by age? Net-worth benchmarksNet-worth benchmarks for dentists by age and career stage, why dentists start behind, and the savings rate that actually builds wealth.
- Why your dental practice shouldn’t be your whole retirement planConcentration risk is the quiet danger for successful dentists. Here’s how to think about building wealth beyond the practice.
- Selling your dental practice: process, timing, and taxesWhat to expect when selling a dental practice — how to prepare, evaluate buyers and deal structures, and plan for the tax impact.