Although many physicians endured pandemic-related income struggles in 2020, psychiatrists are doing fairly well with building their nest egg and paying down debt, according to the Medscape Psychiatrist Wealth and Debt Report 2021.
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Surprisingly, despite COVID-19, psychiatrists’ income improved somewhat this year – from $268,000 in 2020 to $275,000 in 2021.
However, that still puts psychiatrists among the lower-paid specialists.
The highest-paying specialty is plastic surgery ($526,000), followed by orthopedics and orthopedic surgery ($511,000) and cardiology ($459,000), according to the overall Medscape Physician Wealth and Debt Report 2021. The report is based on responses from nearly 18,000 physicians in 29 specialties. All were surveyed between Oct. 6, 2020, and Feb. 11, 2021.
Psychiatrists’ overall wealth gained some ground over the past year, with 40% reporting a net worth of $1 million to $5 million this year – up from 38% last year. Just 6% of psychiatrists have a net worth north of $5 million, up slightly from 5% last year.
Keeping up with bills
based in St. Louis Park, Minn. He noted that the rise in the stock market also played a role, with the S&P 500 finishing the year up over 18%.
Dr. Joel Greenwald
“I’ve seen clients accumulate cash, which has added to their net worth. They cut back on spending because they were worried about big declines in income and also because there was simply less to spend money on,” Dr. Greenwald said.
The percentage of psychiatrists with a net worth under $500,000 decreased from 37% last year to 32% this year. Psychiatry is still among the specialties reporting a high percentage of members with net worth below $500,000.
But gender matters. Earnings overall are higher for male than female psychiatrists, and that is reflected in net worth. Fewer female than male psychiatrists are worth more than $5 million (4% vs. 7%), and more female psychiatrists have a net worth of less than $500,000 (41% vs. 26%).
As in prior years, most psychiatrists are paying down a home mortgage on their primary residence (66%). Psychiatrists’ mortgage payments span a wide range, from less than $100,000 (23%) to more than $500,000 (15%). However, 27% report having no mortgage.
Mortgage aside, other top expenses or debts for psychiatrists are car loan payments (36%), paying off college and medical school debt (26%), credit card debt (25%), and medical expenses for self or loved ones (19%).
Other expenses include college tuition for children (16%), car lease payments (14%), mortgage on a second home (13%), private-school tuition for a child (12%), and child care (12%).
Despite some financially challenging months, the vast majority of psychiatrists (94%) kept up with paying their bills.
That’s better than what much of America experienced. According to a U.S. Census Bureau survey conducted last July, roughly 25% of adults missed a mortgage or rent payment because of COVID-related difficulties.
About half of psychiatrists pool their income to pay for bills. One-quarter do not have joint accounts with a spouse or partner.