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Retirement Benefits Physicians Receive at Work

Throughout our physician salaries by specialty series, we remind doctors that salary is only one part of an overall compensation. While some benefits, such as relocation bonuses, only offer a one-time additional payment, other benefits, such as tax-advantaged retirement plans and employer matching programs, can add significant value year over year. As part of our physician salary and compensation negotiation database that we offer as a free resource to members of our online physician community, our doctors anonymously contribute information about their retirement plans at work. Given that retirement benefits can vary significantly depending on the practice environment, employment type, and the individual employer, below, we compile aggregate data provided from mid-2023 to early-2025 to provide insights into trends. If you’re self-employed or work for an employer that doesn’t offer plans, we cover additional options to consider below to help you on your path to financial independence.


Disclaimers/Disclosures: This information is derived from our physician salary and compensation databases, but is subject to self-reporting errors and availability of relevant data points from our online communities. This information is provided for educational purposes only, and is aimed at advocating for individual physicians. It is not intended to be used for collective bargaining; please see additional disclosures and disclaimers on the physician salary data pages. Please also do your own research before making any decisions based on the information provided. We are not formal financial, legal, or tax professionals and do not provide individualized advice. You should consult these as appropriate. We highly recommend having your physician employment agreement reviewed by a physician contract review attorney to ensure you have the most up to date and relevant information for your specific situation.


Types of retirement benefit plans doctors have through their employers at work


What Retirement Plans Do Doctors Have Access to Through Work?


In our salary database, we directly ask doctors what retirement plans are available to them. We compiled over 5,500 responses across all employers, practice environments, and employment types to compile a high-level overview:


  • 63% have access to a 401k plan

  • 45% have access to a 403b plan

  • 28% have access to a 457 plan

  • 12% have access to a pension

  • 6% have access to a cash balance or other defined benefit plan

  • 1% have access to a TSP


Many physicians reported having access to more than one type of retirement plan through their employer, so you’ll notice the percentages above do not equal 100% across all types.


Certain retirement plans, such as 403bs and TSPs, are only offered by certain institutions. Below, we look at how access to retirement plans differs by practice environment.



How Retirement Plans Doctors Have Differ by Practice Environment


Certain retirement plans are only available through specific types of employers or institutions.


403b plans are offered by public school systems, churches, and other charitable entity tax-exempt organizations, such as cooperative hospital services organizations.


457 plans are offered by government and nonprofit organizations. While we categorize all 457 plans together below, governmental 457b plans are very different from non-government 457s.



The Thrift Savings Plan (TSP) is available to physicians who work for the federal government, including active duty military members.


Additional Insights into retirement plans offered by each practice environment:


  • Active Duty Military: Offers access to TSPs and pensions.


  • Corporate Groups: Primarily (91%) offer 401ks, though depending on the group structure, you may also be eligible for a 403b or 457. 10% of physicians reported receiving a pension and 8% reported receiving a cash balance or defined benefit plan, often alongside a 401k.


  • FQHCs and Other Non-Profit Groups: 97% of physicians either receive a 401k, a 403b, or have access to both. 18% of physicians reported having access to a 457 plan, while only 8% have access to a pension.


  • Government Facilities: Pensions are still heavily prevalent for physicians working for the government, with 75% of doctors having access. The TSP plan is also common, which is similar to a 401k plan for nongovernmental workers (though limited in the funds you can invest in). 457b and 403b plans may also be available, but are less common.


  • Group Private Practices: Physicians working in private practice typically don’t have access to entity-specific plans mentioned above such as 457s or the TSP, but 92% of private practice physicians reported having access to a 401k plan. 10% receive a cash balance or other defined benefit plan. Physicians may also receive pensions or profit sharing structures, though they are less common.


  • Academic Hospitals: The specific institution can dictate the retirement plans available when working at an academic hospital. 75% of doctors reported having access to a 403b, while 45% have access to 401ks. 43% have access to a 457, most commonly alongside a 403b/401k as well. 15% reported having a pension. Cash balance/defined benefit plans were less widely reported, but sometimes available.


  • Nonacademic Hospitals: 403b plans are most common, with 58% of physicians reporting access to one. 55% of physicians have 401k plans available. 41% have access to a 457 plan, often along with a 401k or 403b plan. These types of 457 plans may not always be the best bet for doctors (learn more about non-governmental 457 plans). Pensions and cash balance plans/defined benefit plans were also reported but less common.


  • Solo Private Practices: Similar to group practices, 401ks are the most common retirement plan solo practitioners implement. 17% also leverage cash balance or other defined benefit plans. SEP IRAs, solo 401ks, and SIMPLE IRAs were also reported.


Of note, some physicians reported having eligibility to HSA plans when we asked about retirement options. HSA plans aren’t technically retirement accounts, as they were developed to help provide tax-advantaged savings for medical expenses, so we didn’t include them in the reporting above. HSAs, however, can work as a stealth retirement plan, and if a high-deductible health insurance plan is a good fit for you, we highly recommend leveraging their advantages.



You can dive deeper into each of the retirement plans covered above with our guide to retirement accounts for physicians.



How Employment Type Impacts Retirement Plan Options


Our physician members report if they are 1099 independent contractors, W2 employers, or if they are a partner/owner in a group. They can also denote if they primarily work locums for their practice environment, which we omitted above.


W2 employees and partners/owners are the ones who primarily have access to retirement plan options through employers. 


Self-employed individuals and 1099 independent contractors typically don’t get offered plans by others, and have to establish their own plans. Many reported having a solo 401k, which operates similarly, just for individual business owners. Cash balance/defined benefit plans were also common for our 1099 and self-employed physicians. Depending on the way their businesses are structured and how many employees they have, the choices could get more complicated or prohibitively expensive.



Options for 1099 or Self-Employed Locums and Other Doctors


Several retirement plan options exist outside of traditional employer-sponsored plans that still provide tax-advantaged savings and potential tax benefits as your own employer. These include:

  • Solo 401k plans

  • SIMPLE IRAs

  • SEP IRAs

  • Defined benefit plans

  • Cash balance plans


Similar to W2 employees who can have access to both a 401k and 457 as highlighted above, self-employed and 1099 physicians may be able to establish multiple retirement plans, such as a solo 401k and a cash balance plan.


Different plans have different requirements, such as contribution minimums or maximums. If you’re a private practice owner, the number of other employees you have on staff can also restrict which plans you can open.




Employer Contributions Physicians Receive as Retirement Benefits at Work


While having access to tax-advantaged retirement plans can be beneficial in itself, having an employer contribution to your retirement plan can help you save more (and is often free money!). Along with the plan options available, our physician members can also report in our salary and compensation negotiation database how much their employer contributes to their retirement, either as a percentage or as a set amount.


A few notes to consider when evaluating retirement benefits:

  • Some physicians reported receiving an employer match, while others mentioned their employers contributed to their retirement even if they didn’t.

  • Matching contributions can change depending on how much you contribute. An employer may offer a one-to-one match (100%) of your contributions for a certain percentage, such as 3%, and then a ½-to-1 match (50%) above 3% to 6% as an example.

  • Vesting can be important. Matches or contributions may be made, but if they don’t vest for a certain number of years, if you leave employment before that vesting time period, the employer can claw back their contribution amount.

  • There may be maximum contribution limits, both for what you contribute and what your employer contributes on your behalf, depending on the type of retirement plan. Explore our guide to retirement accounts to learn more about each specific plan.



Typical Employer Contributions by Practice Environment


Since retirement plans can vary significantly by practice environment, we broke down trends in employer contributions by practice environment to help doctors compare apples to apples.


The average percentage of salary employers contribute to physician retirement plans at work as an employee benefit

  • Active Duty Military: A 5% employer contribution to the TSP was most commonly reported, though some physicians noted 2%-4% matches.


  • Corporate Groups: Physicians typically reported employer contributions to 401ks in the 2%-6% range when working for non-private equity groups, with 4% being the average. The average was slightly lower for private-equity backed groups at 3%, though the range remained the same.


  • FQHC and Other Non-Profits: Commonly reported employer contributions ranged anywhere from 1%-10%. A 4% employer contribution was the average. Some physicians mentioned that they didn’t receive a match until they’d be employed for a certain time period. Both 50% and 100% matches of employee contributions were reported, depending on the specific employer.


  • Government Facilities (VA, City Hospital, Etc.): Commonly reported employer contributions ranged from 3%-5%, with 5% being the average and most common. Several doctors reported receiving a 1% contribution, regardless of if they contribute anything, and then a match up to 5%. Many physicians reported receiving both a match to their TSP/401k and a contribution to their pension. Part-time physicians working for government facilities may still be eligible to receive a pro-rated employer contribution to retirement.


  • Group Private Practices: Common employer contributions reported ranged from 2%-6%. The average was 4%, with 3% being the most commonly reported contribution.


  • Academic Hospitals: Academic hospitals varied greatly, with common employer contributions ranging anywhere from 1% up to 20%. 6% was the average employer contribution reported.


  • Nonacademic Hospitals: While nonacademic hospitals didn’t vary as much as academic ones, we still saw a wide range of reported values, anywhere from 1%-10%. The average employer contribution was 4%.



Conclusion


Retirement benefits can add up significantly, with pensions providing a steady monthly source of income throughout retirement and with 401k contribution limits of up to $23,500 for employees and $70,000 for employee + employer contributions annually (for 2025). While academic hospitals often offer lower salaries than other practice environments, we see above that they can offer some of the highest retirement benefits as well. Working at a government or other facility that offers multiple retirement benefits, such as a 401k/TSP and pension or 457b plan, can be a great way to leverage multiple tax-advantaged savings options. While you shouldn’t choose a job just because of the retirement benefits, they’re an important aspect to consider during your physician contract negotiations.



Additional Compensation and Retirement Resources for Physicians


Explore our related articles and resources on doctor compensation and salaries: 


If you haven’t recently, please take a few minutes to contribute! The data provided is used only for the purpose of our database to help physicians like yourself negotiate better compensation by helping provide salary transparency with relevant data. The data is completely anonymous and is only available to members of our Physician Side Gigs Facebook group. Contribution links can be found on our compensation data for physicians page.


Explore related resources for investing and saving for retirement:


If you’re new to investing, a financial advisor can help you put together a comprehensive financial plan to help reach your financial goals.



If you’re looking for a new career opportunity with better benefits, explore the Physician Side Gigs job board for current opportunities.


If you need guidance on negotiating your next contract for the best possible deal, check out:


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