How Much Do PAs and NPs Really Need to Retire? (It’s Way More Than $1M)

I recently asked a room full of medical professionals, “Who here wants to work full-time until they’re 65?” Crickets.

No one dreams of spending four decades buried in EMRs and shift work. Most of us want options—whether that’s retiring early, reducing hours, or just being able to walk away if burnout hits hard. I find very few medical professionals don’t have a desire to never do medicine again - they just want control.

But here’s the truth no one tells you:
To have that freedom, you’re going to need a lot more money than you think.

Let’s break down what financial independence really takes—and how to actually hit that number.

What Financial Independence Actually Means

Financial independence means your assets pay for your life—forever. You’re not relying on your job, you’re not dependent on anyone else, and you get to decide how you spend your time.

You can build that a few different ways:

• Real estate portfolios that cash flow
  
  
• Ownership in operating businesses that send you passive income
  
  
• A stock/bond portfolio you draw from monthly
  
  

For most PAs and NPs?
The easiest, most accessible path is a stock/bond portfolio. You can start with $20, you don’t need to understand extensive due diligence, and it doesn’t require debt or fancy spreadsheets.

Most Medical Professionals Have No Idea What They’re Aiming For

You know you want options. You know you want to retire early (or at least not be stuck in your 60s).
But when I ask, “How much are you aiming for?” most PAs and NPs look at me blankly.

Here’s the math to fix that.

Step 1: Start With 80% of Your Gross Income

A lot of retirement plans are based on replacing 70–80% of your current income. I lean toward 80%—because I want to travel, give, and live fully without being tight on money.

Let’s say you make $100K/year. That means your future retirement income goal is $80K/year.

An alternative to the idea of replacing a percentage of gross income is to inflation adjust your annual expenses instead.

Step 2: Inflation-Adjust That Number to Retirement Age

Inflation is real, and it's not slowing down.
I use 2.5% annual inflation as a baseline.

If you’re 30 now and want to retire at 65? That $80K becomes closer to $180,000/year by the time you retire.

Sound like a lot? It is. But think about how cheap things were when your grandparents were your age. $180K in 35 years will feel like $80K today.

Don’t forget this step. While the data supporting safe withdrawal rates takes into account inflation after the initial year you retire, it doesn’t do anything to account for the inflation that will occur between now and the day you retire.

Step 3: Multiply By 25

Using the 4% safe withdrawal rate, we multiply that future income by 25 to get your retirement nest egg goal.

👉 $180K x 25 = $4.5 million

That’s your target.
Not a typo. Not a luxury number. That’s just what you’ll need to live a normal life without running out of money.

I cannot emphasize enough that this is for a STANDARD retirement - meaning you work full time until your mid 60s. If you want early retirement or semi retirement, the math changes.

“Wait… I Need $4–5 Million to Retire?!”

Yes… you need to be aiming for multiple seven figures.

I’ve said it for years:
Every PA, NP, and PharmD needs to become a millionaire. Not for ego. For retirement survival.

Why You Need to Start Now (Not in 5 Years)

If you’re in your 20s or 30s, you have one advantage: time.
And time is your most valuable investing asset.

Every year you wait means:

• You’ll need to invest more per month
  
• You’ll lose out on compounding
  
• You’ll feel way more stressed in your 40s
  

It’s much easier to build a $4.5M portfolio over 30 years than 15.

TL;DR — Here’s the Formula

1️⃣ 70-80% of current gross income
2️⃣ Inflation-adjusted to retirement year
3️⃣ Multiply that number by 25

That’s your minimum retirement goal.

And if you want to retire early? You’ll need even more.

Final Thought: Most People Don’t Want Basic

These numbers are for a basic retirement.
Most of you don’t want basic—you want better.

So if you’re not investing yet? Start now. 

If you feel lost or behind? You’re not alone. We’ve got resources to help.

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