Retirement Planning: More Than the Math

Retirement planning is often framed as a math problem. And to be fair, it is. “How much should I save?” “Am I on track?” “What’s my retirement number?”

These are important questions. One of the things that I often see, however, is that many retirement conversations stop there. The math matters a lot, but it’s not the whole story. The numbers tell you whether you’re on track, but they don’t tell you where you’re trying to go. That’s why retirement planning isn’t just about accumulating enough money. It’s about understanding what kind of life that money is meant to support.

Let’s scratch the itch and start with the math, because understanding what it can do helps us appreciate what it can’t do on its own. One of the greatest advantages you have when saving for retirement is time. Compound growth is remarkably powerful, especially when you begin early. For example, imagine a pharmacist who consistently saves and invests approximately 15% of their income beginning at the age of 25 years. Assuming the median wage of a pharmacist as reported by the Bureau of Labor Statistics ($137,480/year in 2024¹) and a long-term average annual rate of return of 7%, they could accumulate nearly $3 million by the age of 60 years. (Before we go further, an important disclaimer: Markets do not deliver a steady 7% return each year. They move up and down, sometimes sharply, over short periods.)

OK, now back to the topic at hand. Let’s change just 1 variable and assume this pharmacist starts at the age of 35 years with the same income, savings rate, and investment performance. The projected balance falls closer to $1.3 million. That’s an enormous difference, because in the first scenario, the pharmacist had an extra decade for their money to grow.

That’s the power of time in the market. If you’re curious to play with the numbers yourself, you can do so using a compound interest calculator, such as the one we have available at the YFP Wealth website.

If retirement planning stopped there, it really would just be a math problem. But it doesn’t. Even when the numbers look good, many pharmacists still aren’t confident about retirement.

After more than a decade of working with pharmacists, I’ve heard comments such as these countless times: “I think we’re on track.” “I hope we’ll be OK.” “I guess we’ll figure it out when we get closer.”

I understand why. Depending on your time horizon to retirement, it can feel fuzzy. Life is busy, and between student loans, mortgages, raising children, and advancing your career, it can be difficult to connect with a future version of yourself that feels distant. But avoiding the conversation doesn’t make the outcome any more certain.

Retirement planning isn’t about predicting the future perfectly. It’s about making informed decisions based on reasonable assumptions that can be tested, adjusted, and revisited over time. Markets will change. Spending will change. Life will certainly change. Your plan should evolve along the way.

Which brings us to a question that I believe is just as important as the math: “What does retirement actually
mean to you?”

For some pharmacists, retirement means leaving their work entirely. For others, it means continuing to practice part-time because they enjoy the work but want more flexibility. Maybe it’s traveling more, spending time with grandchildren, volunteering, serving at your place of worship, starting a business, or simply knowing you have the freedom to work because you want to, not because you must.

Those are very different visions. And each one requires a different financial plan.

What I often see is that people become so focused on arriving at a retirement number that they never stop to define what they’re working toward. The goal isn’t simply to accumulate the largest investment portfolio possible. The goal is to create enough financial independence to support your version of a rich life.

So the next time you think about retirement, don’t stop at asking, “How much do I need?” Also ask yourself, “What kind of life am I trying to make possible?” Because the numbers can tell you whether you’re “on track,” but only you can decide where you’re trying to go. When those 2 questions come together, retirement planning becomes much more than a savings calculation.

Do you have a question or topic you would like to see addressed in a future column? Send Tim an email at [email protected].

About the Author

Timothy Ulbrich, PharmD, is cofounder and CEO of YFP Wealth. Founded in 2015, YFP Wealth (formerly Your Financial Pharmacist) is on a mission to help pharmacists achieve financial freedom through fee-only, comprehensive financial planning services. Learn more at yfpwealth.com.

Disclaimer: The information in this article is provided to you for your informational purposes only and is not intended to provide, and should not be relied on for, investment or any other advice. Read our full disclaimer at yfpwealth.com/disclaimer.

REFERENCE

Pharmacists. US Bureau of Labor Statistics Occupational Outlook Handbook. Updated August 28, 2025. Accessed August 3, 2026. https://www.bls.gov/ooh/healthcare/pharmacists.htm