The latest stats are in, Medscape annually releases a Physician Compensation report surveying doctors' salary, gains, and losses. The latest 2022 report surveyed 13,000 doctors across the nation in different specialties and age groups. So what did the newest report reveal?
Impact of Covid
The latest 2022 stats is interesting in comparison to the 2019 pre-covid stats. 70% of 13,000 doctors surveyed reported being negatively impacted by covid either from job loss, fewer work hours, or a decline in patients. However, even with these negative impacts, overall wealth increased.
The increase was likely due to several factors, rising real estate values and cutting back on spending. In addition, doctors' salaries increased overall by 7%.
The average annual income per Medscape’s most recent poll for a primary care physician was $260,000 and specialists weighed in at $368,000.
Wealthiest Doctors
The top 5 highest-earning professions are held by Plastic Surgery, Orthopedics, Cardiology, Otolaryngology, and Urology. Income from these specialties ranged from $461k to $576k. These specialties have held the top five spots for the past five years.
Millionaire Status
Across the board according to the 2021 physician wealth report, 56% of physicians reported a net worth of over a million. Out of family physicians, the majority become millionaires by the age of 55, with only 11% having a net worth of a million before 45.
It is difficult to reach the millionaire milestone at a younger age since most doctors aren't able to independently practice until their early 30s. The average age of a medical student is 24 years old, followed by four years of medical school and then three years of residency, leaving a doctor about 31 years old before they can independently practice. This is when there is a significant salary increase, but still lofty debts to manage.
It is difficult to become a millionaire in the early years because of accumulated debt. But, with wise investments and increasing salaries, the scales begin to tip toward wealth.
Getting There Faster
Earning more and spending smarter are the cornerstones to building wealth. Statistically, self-employed doctors average $65k more a year than employed doctors. 36% of doctors reported supplementing their income with side gigs or adding more hours to their schedule. Employed doctors may want to look into states with the highest pay, such as Kentucky, Tennessee, Alabama, Missouri, and Oregon.
Secondly, smarter spending is demonstrated by 76% of physicians reporting having a budget and 46% reporting living below their means.
If you want to make the jump faster, it starts with clarity. Having a clear vision of your financial goals and then creating a strategy to get there. A financial planner can help you navigate to wise investments, tax advantages, and overcoming debts to reach your goals faster.
