Retirement planning for dentists starts with what your life actually costs (not what you think it costs)
Key Takeaways:
- How much money do I need to make work optional? It’s not about replacing income; it’s about covering your actual spending, which many dentists underestimate by 20-30%.
- Why do dentists need more retirement savings? In most cases, dentists have a higher income, which means a more expensive lifestyle and a bigger nest egg needed for retirement.
- What savings rate should I target? Aim for 15-20% of income. If you can hit that, you can often spend the rest confidently.
“I just want to know I’m going to be okay. How do I know if I have “enough?”
It’s a question we hear from dentists all the time.
But “okay” isn’t a number you can pull from a retirement calculator, and “enough” isn’t an imaginary finish line at the end of your career. It’s deeply personal, fluid, and tied to both how you live now and how you want to experience retirement.
At its core, finding your “enough” is about building the wealth you need to sustain the life that’s meaningful to you: the vacations that matter, the time with family, the ability to help the people you care about, and the freedom to practice on your terms.
This is the work we do with you every day, whether that’s integrating your practice finances with your personal cash flow, coordinating tax planning, or helping you prepare estate planning documents.
It all starts with something most people underestimate: knowing exactly what your life actually costs.
You Don’t Need to Replace Your Income. You Need to Know What Your Life Actually Costs
One of the most common misconceptions in retirement planning is that the goal is to replace your income when you stop working. That framing sounds logical, but it’s also misleading. Think of it this way:
Income is what you earn. Spending tells you what you really need.
Your income includes taxes, retirement contributions, and business expenses—costs that largely disappear in retirement. Focusing on replacing your full income means planning for many expenses that won’t exist anymore.
If you don’t want to have to work, you don’t need to recreate your paycheck. You need to be able to support the life you’re actually living. And that number can look very different from one dentist to the next, even when incomes are similar.
In fact, two dentists can earn the same amount and still have wildly different “enough numbers.” The difference isn’t their income; it’s their lifestyle. Things like:
- How often you travel, and how you prefer to travel
- The home you live in (and continue to maintain or upgrade)
- What you spend supporting kids, parents, or other family members
- Hobbies, club sports, memberships, or passions that matter to you
- How much convenience you build into your life, from help at home to time-saving services
None of these choices are wrong. In fact, for many dentists, they’re the point of building a successful practice in the first place. But they all carry a real, recurring cost, and those costs are what ultimately determine how much wealth you need to make work optional.
Most People Underestimate What Their Life Really Costs
When dentists come to us, they have a general sense of what they spend. But when we actually dive in and track their cash flow, the real number is almost always higher than they thought—often 20 to 30% higher.
This isn’t because people are reckless with money. It’s because lifestyle costs hide in plain sight. Travel. Helping family. Home improvements. Kids’ activities. Irregular expenses that don’t feel “real” month to month but absolutely add up over the year.
And then there’s the assumption that many people carry: “Once the mortgage is paid off and the kids are out of the house, my spending will drop.”
In reality, early retirement spending often stays the same or even increases. Travel picks up. Experiences become a priority. Family support continues, just in different forms. The money doesn’t disappear; it shifts. Our job is to help you figure out the exact numbers that shape your life every day and help you estimate how those costs might shift as your life progresses.
Seeing the real cost of your life can feel confronting. But it’s also empowering.
Because once we know what your life actually costs, you can plan with confidence instead of guessing.
Wondering how your spending and savings stack up to other dentists? Take a look inside our 2025 Financial Benchmark Report for Dentists or tune in to our analysis over on the podcast.
What’s Different for Dentists: Earn More, Spend More, Save More
Because dentists make significantly more than the average American, they tend to spend more. And rightfully so—that lifestyle is often the whole point of building a successful practice.
But here’s what that means from a planning perspective: you need a bigger nest egg than most people.
If you spend 3-4 times more than the average household, you’ll need 3-4 times more in retirement savings to sustain that lifestyle. Generic advice just won’t cut it for most dentists.
That’s why we generally recommend aiming for a 15-20% savings rate at a minimum. If you can consistently put away that much, the math usually checks out. The liberating part is that if you’re hitting your savings target, you can spend the rest with confidence.
The Happiest Clients Aren’t Chasing More; They’re Choosing More
Over the years, I’ve noticed something about the clients who seem most at peace with their finances. They’re not necessarily the ones with the biggest portfolios or the highest incomes.
They’re the ones who’ve found their version of “enough.” They’re not maximizing income or growth for its own sake, but living confidently within a plan that works for them.
That looks like:
- A lifestyle they genuinely enjoy
- A work schedule that feels right (maybe 3-4 days a week instead of five)
- Clear priorities around time, family, and energy
It’s not about perfection or endless zeroes on the bank statement. As odd as it sounds, sometimes making more money and happiness are at odds.
The goal is having the option to work because you want to, not because you have to. That shift changes everything.
“Enough” as a Mindset
We track your cash flow, model your retirement readiness, and build a plan that’s grounded in real numbers, because the math matters.
But mindset matters just as much. Our planning exists to support the life you want—not replace it with a spreadsheet.
We’re also here to remind you that “enough” evolves over time. What feels right in your mid-30s may shift in your 50s. Your priorities will change. Your expenses will change. Your sense of what matters will change. And that’s okay.
If you have any questions about how your spending and savings align with your retirement planning, or if you’re thinking about an upcoming lifestyle shift (new practice, fewer working hours, etc.) we’re always here to talk about how we can bring your goals into reality.
If you’re ready to get clear on your “enough number,” let’s schedule a complimentary conversation. We’ll help you organize your finances, assess where you stand, and build a plan that makes work optional on your terms.
