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 the founder of Dental Wealth Partners and a fee-only financial planner dedicated to dentists. As an investment adviser representative (Series 63 and 65), he built the firm to give dentists coordinated, fiduciary advice across their practice, taxes, investments, retirement plans, and long-term goals — the whole picture in one strategy. A graduate of Belhaven University, Ian previously worked at Davis Private Wealth, MML Investors Services, and Northwestern Mutual, and is based in the Jackson, Mississippi area. He is the author of The Wealthy Dentist 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.