Planning for a Secure and Rewarding Retirement

By Jennifer Anne Hohman

According to the 2024 AAPA Salary Survey, approximately one in 10 PAs in the United States are age 55 or older and approaching retirement. Over 10% of these PAs anticipate retiring within the next year and 28.5% anticipate retiring within the next one to three years.

PAs entering the last stage of their careers have multiple considerations, including finding rewarding ways of being outside of full-time practice and navigating factors of financial wellbeing. In this article, I will discuss some of the main areas that PAs approaching retirement should reflect on and plan for.

Defining A Satisfying Retirement

A satisfying PA retirement must be defined on your own terms as there are many options for crafting a retirement that will support your financial, social, and emotional wellbeing. How would you like to transition away from full-time practice, or conclude your participation in the world of medicine? The arc of a PA career, including its culmination, can be enriched by many journeys and side paths. Planning your retirement requires you to think about how you might most meaningfully spend your time once you’ve stepped away from practice either fully or part time.

The phase before (and after) retirement can include downshifting to include part-time or locums tenens positions; making adjustments to step away from more rigorous schedules; and easing into a lighter workload without stopping practicing altogether. Keeping an active license is a wise choice for those who know they would like to keep at least one toe in medicine after leaving full-time practice.

So many PAs I work with speak of the abiding emotional satisfaction of making a personal difference for their patients. Connecting with, empowering, and helping others is a huge motivator for so many in the profession, and keeping these themes in your retirement would be a good goal for some PAs. Volunteering is an ideal way to maintain that vital sense of service and human connection, and sites like Volunteer Match can help connect you to your dream volunteer opportunity with the ability to search by cause areas and skills.

There is such a need for caring individuals who understand medicine and are talented communicators. That said, there are many other volunteer causes that are not specifically medical where your other talents and values can be expressed. Volunteer Match’s cause section is a great resource for brainstorming and exploration.

Retired PAs can also be a force for the profession, contributing their knowledge and expertise in the areas of education, mentorship, and advocacy. As the profession grows, the lived experience and insights of long-term PAs are essential! How might you contribute to the success and well-being of the next generation of providers? Consider staying connected to the profession through AAPA membership activities and volunteer opportunities. You can also share your wisdom and career insights with PAs in all stages of their careers via AAPA’s Mentor Match program.

Financial Planning

Many PAs can be delayed in aggressive retirement savings and investments due to student loans, but hopefully you’ve been able to make use of the magic of compounding interest and saved well. Early and mid-career readers—know that the earlier you start investing, the more powerfully you will create a retirement nest egg. Contribute the maximum to employer-sponsored plans, such as a 401(k) or 403(b). A 403(b) and 457(b) are great benefits frequently offered by hospitals.

Assessing retirement benefits is a smart aspect of contract negotiation! Clarify terms and seek out the fine print of any offered plans. It is also advantageous to make use of tax-advantaged Health Savings Accounts, which can be used for qualified medical expenses now and invested for retirement later.  Plan for Medicare enrollment and supplemental insurance, as healthcare costs can be significant in retirement. Some financial planners and CPAs specialize in serving clinicians. Look for a fiduciary who prioritizes your best interests and a CPA who can help you to minimize taxes and maximize investment opportunities.

What are your expected living costs in retirement, including housing, healthcare, food, transportation, and activities/hobbies/travel? For some PAs, it will make sense to develop a plan to generate income in retirement through a part-time job or consulting work, potentially in non-clinical areas that are less physically demanding than patient care. This can help you create income; keep you connected to your professional skills and interests; and potentially build on your previous career in new and exciting ways.

A Personal Renaissance

With proper planning, retirement can be a personal renaissance. As a PA, you’ve spent your career caring for others and often prioritizing their needs. In retirement, you are free to pursue passions that are both inside and outside the world of medicine and health, based on what is meaningful and rewarding to you. A fulfilling retirement, like a PA career, has to do with fulfilling a personal vision. Your retirement should be a reflection of what you value and love, with time for family, travel, passions and interests, causes, service to your community, professional mentorship, and personal wellbeing—all well-earned rewards for a career spent working to make patients’ lives better.

Jennifer Anne Hohman is founder of PA Career Coach, a service dedicated to improving PAs professional wellbeing through individualized career support. Contact her for a range of career services at [email protected].