When Do Doctors Become Millionaires? | Blog | Parlade Schaefer Schortz CPAs (2024)

FAQs

At what age do most doctors become millionaires? ›

By the time physicians reach their forties, it is very possible to achieve millionaire status, with some physicians even becoming multimillionaires. This trend continues with doctors in their fifties, with 60% of physicians' worth at least $1 million.

The top ten percent of physician earners averaged $1.3 million, and the top one percent averaged $4 million, although the vast majority of their incomes came from business income or capital gains, according to The Washington Post.

Depending on which specialty a doctor chooses to pursue, their residency can be three, four, five, six, or seven years in length. As a resident, a doctor in training earns a set salary of around $60,000 a year, according to the American Medical Association, and this pay increases each year of the residency program.

The highest-paid physicians in the US are in surgical and procedural specialties such as neurosurgery, thoracic, and orthopedic surgery. These physicians earn an average annual salary of $600,000 or higher.

More than 25 percent of physicians in 2017 earned above $425,000 annually and the top 1 percent of physicians averaged $4 million in annual earnings — 10 times the average annual earnings in the sample and more than twice the average earnings in the top 5 percent.

Twenty-eight percent of physicians have a net worth ranging between $2 million and $4.9 million in 2024, according to Medscape's 2024 "Physician Wealth & Debt Report," published June 12. An additional 25% of physicians have a net worth of less than $500,000, while 21% are worth $1 million to $1.9 million.

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.

1. Surgeon. Surgeons are among the highest-paid healthcare professionals, with salary packages upwards of $500,000 due to their extensive education and training, and the critical nature of their work.

Earning 4-5 times the average is a great income. You can have a wonderful financial life on an income of $275,000. You can pay off your debts, live comfortably, never worry about money, become financially independent by mid-career, help others, and even buy a few luxuries along the way.

Doctors may fall victim to lifestyle creep by buying expensive cars, houses, vacations and other luxuries, without saving or investing for the future. Lifestyle inflation and other debt can prevent doctors from achieving financial independence, paying off debt or preparing for emergencies. Making bad investments.

Is med school worth it financially? ›

The Benefits of Going to Medical School

Additionally, a career in medicine is also financially rewarding. Medical professionals are among the highest earners in the world of work, with some earning millions of dollars a year.

The 2021 physician wealth report showed that 56% of physicians reported a net worth of over $1 million. The majority of family physicians become millionaires by the age of 55 — only 11% had a $1 million net worth before 45.

The average age of first-year medical students is 24, and most students are 28 years old upon graduating. However, there is a wide age range for medical students. For the 2023-2024 medical school class, matriculants ranged in age from 18 to 62.

Being a doctor doesn't make you rich

Especially when you get into the differences in pay between specialties. However, regardless of your specialty, you make in the top 1% of income in the U.S. and the world as a physician. So, you are a highly-paid individual.