How much do doctors need to retire: A $2.7 million gap at 62

Start with the spending gap, not the account balance

Curtis spends $14,000 each month, or $168,000 a year. Before using that as a retirement number, separate costs that may change when he cuts back: taxes, health coverage, alimony, and any practice costs tied to his hours. The checking account tells you what leaves each month; the year-end tax return can show which outflows may shrink.

Next, subtract only income with a realistic amount and start date. If Curtis nets $60,000 from part-time work, his annual gap is $168,000 minus $60,000, or $108,000. Divide $108,000 by 0.04 for a $2.7 million planning estimate. Treat the 4% figure as a rule of thumb for arithmetic; no portfolio guarantees that it will pay out that amount.

Set the target only after subtracting dependable part-time income and benefits you have a reasonable basis to expect. Recalculate when spending or either income source changes. Gross pay is not the same as spendable pay: one careful mistake, counting $60,000 of gross work income as fully available, understates the need by $24,000 a year if taxes and work costs leave $36,000.

Which retirement income option fits the early 60s?

With $168,000 of annual spending, a $60,000 pay source leaves a $108,000 gap; later, $40,000 of benefits leaves a $128,000 gap if that pay stops. The target falls only when income is dependable. The comparison uses one assumption: $168,000 annual spending and the stated income sources, with a 4% planning rule.

A portfolio target is the gap divided by 0.04, so the figures below are arithmetic estimates, not forecasts. Full-time work lowers the need for portfolio draws while the pay continues. Part-time work at 62 leaves a $2.7 million gap target. Retiring before 65 with no pay leaves a $168,000 gap, or $4.2 million; health coverage can add pressure before Medicare generally begins at age 65.

Investments can fall in value, so a portfolio may provide less income than this arithmetic suggests, and you may get back less than you invested. The point isn't to crown one route. It's to see which income bridge depends on a job, a benefit start date, or savings.

The 50s: price the years before the switch

Curtis is 57, so five years remain until he cuts his hours, enough time to test the spending plan against actual bills. Annex Wealth Management would put alimony, employer health benefits, and practice-related costs on separate lines, then ask which end when he reduces hours. If money must come from retirement accounts before age 59½, check the plan rules and the possible tax or penalty before building that draw into the budget. A financial planning for doctors discussion can connect the monthly plan to the accounts, but a practice sale needs its own numbers.

What changes at age 62 and age 65?

Claiming Social Security at age 62 when full retirement age is 67 reduces the monthly benefit by 30%, according to the Social Security Administration. Working longer shortens the number of years savings must cover. Delaying benefits does the opposite for the bridge: the monthly check is larger once it starts, but savings or pay must cover more years before it arrives. The benefits letter gives you an estimate; don't substitute a guess.

Price health coverage from the planned work exit until age 65, when Medicare generally begins. For 2026, Medicare's standard Part B premium is $202.90 a month, with an annual deductible of $283. Those figures don't price every policy or out-of-pocket cost, so use actual coverage estimates in Curtis's monthly plan. Annex Wealth Management can compare the exit date with those costs; physician student loan planning is a separate question if a balance remains.

The first years after age 70

Required minimum distributions begin at age 73 for people born before 1960 and age 75 for people born in 1960 or later, under IRS rules. A required minimum distribution is the amount certain retirement accounts must pay out each year; it can add taxable income even when you don't need the cash. Compare the RMD notice, benefits letter, and year-end statements before assuming the original target still fits. Account type and the order of income draws can change the tax bill later.

What can you do alone, and where is a conversation useful?

You can total monthly spending, list dependable income, and calculate the first gap on your own. Annex Wealth Management can review timing, account taxes, benefit assumptions, and the cost of leaving work before Medicare; fees are set out in a written agreement before work begins.

• Total monthly spending
• List dependable income
• Calculate the first gap
• Check dates and account rules