How to Plan for Retirement and Succession for Dentists

Planning for retirement and succession is one of the most important steps in a dentist’s career. It is more than simply setting a date to leave your practice. A truly effective plan addresses financial preparation, accurate practice valuation, careful successor selection, and legal coordination to ensure a smooth transition for your patients, staff, and family. 

At Dental Strategic, we guide dentists nationwide through every stage of this process, providing the tools, partnerships, and strategies needed to secure your future and protect your legacy.

This Article will address:

• How to choose the right retirement plan for your dental practice and employees
• When to begin planning for retirement
• How to determine if you are on track for retirement
• How much to save outside your practice to diversify assets
• The impact of student loan debt on retirement planning
• What dental practice succession planning is and why it matters
• How to identify and train a successor
• Pros and cons of internal versus external successors
• How Dental Strategic can help you navigate retirement and succession

When Should I Start Planning for Retirement?

The best time to start planning for retirement is the day you open your practice. Early planning maximizes investment growth, allows for more strategic tax decisions, and provides greater flexibility. Many dentists delay retirement beyond age 65, often due to financial considerations or passion for the profession. Setting clear milestones for each stage of your career helps ensure you are always moving toward your retirement goals.

Am I On Track for Retirement?

To determine if you are on track, evaluate:

• Your annual savings rate relative to your income.
• Progress on paying down debt, including business loans.
• The current value of your practice and projected growth.

Periodic financial reviews with a qualified advisor will help you adjust your plan to changing circumstances and market conditions.

How Much Should I Be Saving Outside My Practice to Diversify Retirement Assets?

While your practice may be one of your largest assets, relying solely on its value for retirement is risky. Diversifying into stocks, bonds, real estate, and other investment vehicles protects against industry-specific downturns. Aim to build a portfolio that provides both stability and growth potential.

How Does Student Loan Debt Impact Retirement Planning for Dentists?

High student loan debt can delay your ability to save for retirement, but it does not have to derail your plan. Strategies such as refinancing at a lower interest rate, using an income-based repayment plan, or allocating a portion of income to both debt repayment and retirement savings can keep you on track.

What Is Dental Practice Succession Planning, and Why Is It Important?

Succession planning is the process of preparing your practice for a change in leadership. It ensures that your patients receive consistent care, your staff experiences minimal disruption, and your practice value is preserved. Without a clear plan, you risk financial loss, operational instability, and damage to your professional legacy. Dental Strategic specializes in creating succession strategies that align with your goals and timelines.

How Do I Identify and Train a Successor for My Practice?

Identifying a successor begins with evaluating potential candidates. This could be an associate dentist already within your practice, a family member in the profession, or an external buyer. Once identified, training should focus on:

• Introducing them to patients and staff to build trust.
• Gradually increasing their involvement in management and decision-making.
• Ensuring they understand your practice culture and values.

What Are the Pros and Cons of Internal vs. External Successors?

Internal Successors

• Advantages: Familiar with your patients, staff, and systems. Smoother transition with minimal disruption.
• Challenges: May require financing support, limited pool of candidates.

External Successors

• Advantages: Potential to bring new ideas, technology, and resources. May have immediate capital for purchase.
• Challenges: Longer adjustment period for patients and staff, possible cultural changes.

How Dental Strategic Can Help You Plan for Retirement and Succession

At Dental Strategic, we combine industry knowledge, proven processes, and personalized service to help dentists navigate retirement and succession planning. Our services include:

• Comprehensive practice valuation
• Retirement plan selection guidance
• Coordination with legal and financial advisors
• Successor identification and vetting
• Ongoing coaching throughout the transition

Schedule a Meeting with the Team at Dental Strategic

Retirement and succession planning are not just business decisions. They are personal milestones that shape your future and your legacy. By starting early and working with a team that understands the unique challenges of dentistry, you can retire with confidence and pride.

At Dental Strategic, we help dentists nationwide create comprehensive retirement and succession plans tailored to their goals. Contact us today to start building your secure future and ensure a smooth transition for your practice.

Sources:

•  American Dental Association. “Retirement Planning for Dentists.”
•  Dental Economics. “Navigating Retirement: Strategic Exit Plans for Dentists.”