Record inflation could push back physician retirements

High inflation is pushing many retirees back into the workforce, The Wall Street Journal reported April 11, and that return to work could have some physicians reassessing their own retirements. 

Inflation hit a 40-year high in February. The share of people over age 55 either working or looking for a job rose to 38.9 percent in March from 38.4 percent in October, according to the Journal. People relying on pensions, fixed income or limited savings are now migrating back to the labor force. 

The return of retirees to the workforce could be a warning to those near retirement who are trying to map out their incomes amid an uncertain financial future, including the aging physician population. 

The average age of a physician was 53.2 years in 2021, and more than 2 in 5 active physicians will be older than 65 in the next decade, according to data from the Association of American Medical Colleges. 

Many physicians were among the nearly 2.6 million Americans who retired earlier than expected between February 2020 and October 2021, according to the Journal

Rising inflation costs could make it difficult for physicians considering a return to work to tackle practice expenses. As labor and supply costs increase, reimbursements have plateaued.

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