Photo courtesy of Dr. Vitto Mena, who shares the financial planning needed for optometrist retirement planning.
Optometrist retirement planning
By Vittorio Mena, OD, MS
July 30, 2025
In my previous column, I highlighted why it makes sense to invest in yourself and consult financial advisors who truly understand optometry and the daily demands of this profession.
Today, let’s focus on how you can establish baseline numbers for your retirement game plan.
Why Geographic Location Matters
Optometrists work in every corner of the country, so knowing what retirement requires for average Americans in each state is important.
As of 2025, GoBankingRates reports that West Virginia is the least expensive state for retirement, with an average annual cost of living of $48,665 and $637,873 in retirement savings needed.¹ Optometrists there earn an average annual salary of $111,560, according to World Population Review.²
On the other end of the spectrum, Hawaii tops the list as the most expensive. The average annual cost of living is $108,152 and you’d need $2,125,029 to retire there.¹ In Hawaii, optometrists average $139,320 a year.²
Out of all 50 states, it isn’t until Arizona—ranked 36th in cost—where the needed retirement savings surpass $1 million. That means only 15 states require more than $1 million to retire. In Arizona, the average annual cost of living is $64,521, with $1,034,255 needed for retirement.¹ Optometrists in Arizona average $140,870 annually.²
I live in New Jersey—which ranks 44th for highest amount needed to retire. Here, you’d need $66,314 a year to live and $1,079,101 total for retirement.¹ Some might argue only South or Central Jersey residents are truly affected, but the numbers don’t lie.
The Big Picture: Most and Least Expensive States
For quick reference, the top five most expensive states in terms of cost of living and retirement savings are Hawaii, Massachusetts, California, Alaska and New York. The least expensive are West Virginia, Oklahoma, Kansas, Mississippi and Alabama.
Looking Beyond the Averages
If you’re early in your career, you might wonder what these numbers will look like when it’s your turn to retire. Inflation isn’t included here. Plus, you might already be earning above the average optometrist, who currently takes home $134,830, or about $65 an hour, per 2024 Bureau of Labor Statistics data.³
Retirement targets are really about hitting a dollar amount, not a specific age. Understanding your individual numbers is crucial.
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A Sample Calculation for Early-Career ODs
Using this retirement calculator,⁴ I plugged in a scenario: A 30-year-old optometrist with no retirement savings earns $135,000 a year, expects no pay raises and plans to retire at 67. If that person lives to 100, they’ll need 33 years of retirement income.
Assuming they want to live on 75 percent of their pre-retirement salary, they’d need $2,835,006 in total, or $85,909 per year, according to the calculator. That scenario assumes a 7% return while working, 4 percent return during retirement and 3% annual inflation.
To hit that goal, you’d need to invest $1,586.50 every month from age 30 to 67, averaging a 7% return. If you earn $135,000 and pay 24 percent in taxes—just for ease of discussion—that’s $102,600 take-home pay. Saving $1,586.50 per month adds up to $19,038 per year, or 18.7 percent of your take-home salary.
If you save this pretax, that $19,038 is 14.1 percent of your annual salary. CNBC reports that financial experts often recommend investing 15 percent of your pretax income.⁵ Unfortunately, the U.S. Bureau of Economic Analysis says most Americans save only 4.5%.⁶
Life Is Complicated: Adjusting for Real World Factors
Retirement planning becomes even more complex if you are married, have kids or still owe on your mortgage, practice or student loans. These factors make it even more important to seek out trustworthy financial advice. Relying on Social Security may not be the safe bet it once was, either.
For now, you can experiment with the retirement calculator I used.⁴ It features video tutorials to help you input your numbers and adjust for your situation, whether that’s different household income, current savings, expected raises, desired retirement age or more.
The Road Ahead: Keep Reviewing Your Plan
Investments are only one piece of the puzzle. Knowing your numbers is a strong start, but your financial game plan should be adjusted every three to six months to keep you on track. I’ll dive deeper in future columns. Thanks for reading and stay tuned for next month.
This column is for informational purposes only, based on hypotheticals, and does not constitute financial advice. There is always risk and potential for loss with any investment. Please consult a licensed financial advisor before making choices about investments.
References
- GoBankingRates: How much you need to retire, by state
- World Population Review: Optometrist salary by state
- BLS: Optometrist Pay in May 2024
- Derek Coburn: Retirement calculator
- CNBC: How much of your income should go toward investing
- BEA: U.S. personal saving rate
Vittorio Mena OD, MS, is the sports vision director with Optical Academy. Dr. Mena is also an Optometric Financial Coach, with Series 6 and 63 investment licenses and Series 2-14 life and variable annuity licenses. To contact him: menavitt@gmail.com
