Retirement Planning for Dentists: A Guide for Practice Owners

Most retirement advice is written for people with a 401(k), a steady paycheck and maybe a pension. You've got something bigger and a lot messier: a practice.

For most owners it's the single largest asset they'll ever have. It's also the one that's hardest to plan around, because you don't know exactly what it's worth, when you'll sell it, or who'll buy it. That's why retirement planning for dentists works differently. Your savings matter, but so does your exit, and the plan only works when the value of your practice is real rather than guessed.

Here's how to put it together: when dentists actually retire, how much you need, which accounts do the heavy lifting, and how to turn the practice itself into retirement income.

When Do Dentists Retire?

Later than they used to. According to the ADA's Health Policy Institute, the average U.S. dentist retired at 68.7 in 2024, up from 64.7 in 2001. Careers now average more than 41 years. And a lot of owners are close: in DentalPost's 2025 salary survey, 34 percent of dentist owners said they plan to retire within six years.

There's no mandatory retirement age for dentists, so the right time is when three things line up: your finances, your health and your practice's readiness to sell. The first two are personal. The third is the one most dentists underestimate, because getting a practice ready to sell for top dollar takes a couple of years on its own.

That's why the best time to start planning is five to ten years before you want to stop. It's also why disability insurance matters more than most owners think. The physical side of dentistry is real, and plenty of retirements happen earlier than planned.

Your Practice Is Your Biggest Asset, Not Your Whole Plan

For a lot of dentists, the sale of the practice is the cornerstone of retirement. That's fine, as long as you know two things: what it's actually worth, and how much of that you'll actually keep.

On the first point, most general practices sold to another dentist land around 65 to 80 percent of a year's collections, and profit decides where in that range you fall. Our guide on how to value a dental practice walks through the math. The mistake I see most often is a retirement plan built on a number the owner picked years ago, which turns out to be way off once a buyer and their lender look at the books.

On the second point, the sale price isn't what lands in your retirement account. Broker commissions typically run 8 to 12 percent of the price (ours are typically 4 to 7 percent, depending on the size of the practice), and then there are legal fees and taxes. Here's a rough picture:

Taxes are the piece that surprises people. Goodwill is usually taxed at capital gains rates, but other parts of the sale can be taxed as ordinary income, and how the price gets split makes a real difference. Read up on the tax consequences of selling a dental practice before you plan around a number.

How Much Do You Need to Retire?

There's no single answer, and averages won't tell you whether you're on track. Your own number will. A common rule of thumb is to have about 25 times what you'll spend each year, which roughly corresponds to withdrawing 4 percent a year. The trick is to subtract any income you'll have anyway, like Social Security or rent, before you multiply.

Say you want to spend $180,000 a year, and Social Security plus rent from your building will cover $70,000 of it. The gap is $110,000 a year, and 25 times that is $2.75 million. Your practice sale, your retirement accounts and your other savings all count toward it.

The numbers are just an example, but the shape is typical. The practice rarely covers everything on its own, which is why the next section matters so much.

The Retirement Plans for Dentists That Do the Heavy Lifting

As an owner, you control the practice's retirement plan, and that's a huge advantage. You can shelter far more than an employee can, especially in your last ten years of practice. Here's what the main options look like with the 2026 IRS limits:

A few things worth knowing before you pick. Plans that cover you generally have to treat your team fairly too, so the cost of contributing for staff is part of the math. Starting in 2026, if you're 50 or older and the practice paid you more than $150,000 in W-2 wages last year, your catch-up contributions have to go in as Roth. And whatever you build up, required minimum distributions start at 73, or 75 if you were born in 1960 or later. A CPA or financial planner who works with dentists can tell you which combination fits your income and your team.

Turning Your Practice Into Retirement Income

Retiring doesn't have to mean selling on Friday and never seeing a patient again. These are the paths I see dentists take most often:

A few catches to plan around. If your buyer uses an SBA 7(a) loan, you can't stay on as an employee. The buyer can only contract with you as a consultant, for up to 24 months total, so a sell-and-stay plan has to be written that way. If you sell to a DSO, part of your price often comes as rollover equity (stock in the DSO), which can grow but isn't cash you can spend, so don't count it as retirement money until it pays out. We cover that tradeoff in selling your dental practice to a DSO. And if you're thinking about carrying a note for the buyer, read up on seller financing first. For the phased route, our guide to transitioning a dental practice goes deeper.

A Retirement Timeline for Practice Owners

• Ten years out. Max out your retirement plans, pay down debt and figure out your number.
• Five years out. Get your first real valuation, pick your exit path and consider bringing on an associate. Review your disability and long-term care coverage.
• Two to three years out. Clean up the books, lock in a lease with five to ten years left, and fix the equipment a buyer would flag. Our guide to preparing to sell has the details.
• 12 to 24 months out. Decide how you'll sell and go to market. Here are the steps to selling a dental practice, and a selling checklist to keep you on track.
• Your last year. Keep production steady (a slide now costs you at closing), line up health insurance if you're retiring before Medicare at 65, and talk to your malpractice carrier about tail coverage.
• After the sale. Decide when to claim Social Security (anywhere from 62 to 70, and full retirement age is 67 if you were born in 1960 or later) and plan for required distributions.

The Things Nobody Warns You About

• You can still be sued after you retire. Claims can come in years after the treatment. If your malpractice policy is claims-made, you'll need tail coverage, and many carriers include it free for long-time policyholders who retire.
• Patient records don't just disappear. In a sale they stay with the practice and the buyer takes over as custodian. If you close without selling, keeping them is on you, for as long as your state requires.
• Health insurance before 65. If you retire early, you'll need coverage until Medicare kicks in.
• Your license. If you want to teach or volunteer, check what your state board requires to keep your license active.
• What you'll do all day. Plenty of retired dentists teach at dental schools, volunteer at free clinics, mentor young dentists or keep a day or two of clinical work. Deciding ahead of time makes the transition a lot easier.

Start With the Number

Every good retirement plan for a practice owner starts with an honest value for the practice. Our free dental practice valuation gives you an estimate in minutes, and if you're five years out, it'll show you what to work on while there's still time. When you're ready to talk about the sale itself, here's how we help dentists sell.