How to Save for Retirement as a Medical Professional in Australia?

For many medical professionals in Australia, retirement planning is often postponed in favour of the immediate demands of running a busy practice or managing a hectic work schedule. However, saving for retirement is one of the most important financial goals you’ll ever set, so it’s always best to do this with the advice of a financial planner or certified accountant. The earlier you start, the more comfortable and secure your retirement years will be.

In this article, I will look at some of the most popular ways to save for retirement as a medical professional in Australia, including superannuation contributions, investments, and leveraging government schemes.

It is important to note that the information in this article is general in nature and is for information purposes only. It is not financial, investment or personal advice and may not be suitable for your circumstances. You should always seek your own independent financial advice.

Maximising Superannuation:

1. Understand Your Superannuation Contributions: As a medical professional, your employer contributes a minimum of 11% of your salary (as of 2025) to your superannuation fund. This is an excellent start, but as your financial planner may advise you, to maximise your retirement savings, it’s a good idea to make additional contributions on top of the mandatory employer contributions.

2. Salary Sacrificing: One of the most effective ways to increase your superannuation savings is by salary sacrificing. This involves having a portion of your pre-tax salary paid directly into your superannuation fund. Salary sacrificing is tax-effective because the contribution is taxed at 15%, which is often lower than your marginal tax rate.

3. Non-Concessional Contributions: If you have extra savings, you can also make non-concessional (after-tax) contributions to your super fund. These contributions are capped at a certain limit, and while they don’t reduce your taxable income, they provide additional funds for your retirement. For 2025, the limit for non-concessional contributions is $110,000 per year (or $330,000 under the bring-forward rule).

Investment Strategies for Retirement:

1. Diversified Investment Portfolio: In addition to superannuation, you can build wealth for retirement by investing outside of your super fund. This should be done with the guidance of your financial planner or accountant.

   A diversified portfolio of stocks, bonds, real estate, and other assets can provide both capital growth and income in the long run.

   As you get older, consider adjusting your portfolio to reduce risk by shifting toward more conservative investments like bonds and income-generating assets.

2. Consider Property Investment: Real estate is a popular investment choice for many Australian doctors, as it offers both long-term capital growth and rental income. Many doctors choose to invest in rental properties to generate passive income that can support their lifestyle in retirement. You can also consider investing in commercial properties or real estate investment trusts (REITs) as part of your diversified strategy.

   Interest paid on an investment home loan for doctors or an investment home loan for nurses is tax deductable.

   If you have an investment property, consider adding a Granny Flat to generate a second income from a single property. Granny Flats are a positively geared investment in most capital cities, meaning your rental income should exceed the loan repayments being made to build the Granny Flat.

3. Managed Funds and ETFs: If you prefer a more hands-off approach, managed funds and exchange-traded funds (ETFs) can be excellent investment options. These funds pool money from investors to invest in a diversified range of assets, giving you exposure to a wide array of sectors and geographical regions without the need for active management. Again, your financial planner can give you specific advice tailored to your requirements.

Government Assistance:

1. Age Pension: The Australian government provides an age pension to eligible retirees to ensure they have a basic income in retirement. While many doctors may not rely on the age pension due to their higher earnings, it's important to understand the eligibility criteria, which are based on age and means testing. The pension can be a safety net if other savings are insufficient.
2. Superannuation Co-Contribution Scheme: The government offers the superannuation co-contribution scheme, which matches your after-tax super contributions if you earn below a certain threshold. For those earning up to $56,112 (2025 limit), the government will contribute up to $500 to your super for every $1,000 you contribute. This is a great way to boost your superannuation savings if you’re in the lower-income range.

Retirement Planning Tips:

1. Work with a Financial Planner: Planning for retirement can be complex, particularly for high-income earners. A financial planner can help you navigate the various retirement saving strategies, tax implications, and investment options to ensure that you’re on track to meet your retirement goals.
2. Set Realistic Retirement Goals: The earlier you start planning for retirement, the more time you have to accumulate wealth. Set clear retirement goals, such as the age at which you want to retire, the type of lifestyle you envision, and how much money you'll need to support that lifestyle. Having a clear target will help you stay focused.
3. Review Your Plan Regularly: Life changes, and so do your financial circumstances. Review your retirement plan every year to ensure it still aligns with your goals. Adjust your contributions, investments, and strategies as needed to stay on track.

Retirement planning doesn’t have to be overwhelming. By taking advantage of superannuation contributions, diversifying your investments & utilising government programs, you could build a solid financial foundation for your retirement. Start early, seek professional advice & keep an eye on your long-term goals.