Retirement Plans for Veterinary Practices: What Female Veterinarians Need to Know
Secure Your Future: Essential Retirement Strategies for Female Veterinarians
Running a veterinary practice is deeply rewarding—but it’s also demanding. For many female veterinarians who own small clinics, retirement planning often takes a back seat to daily operations, staff management, and patient care. Yet, delaying personal savings can create long-term financial vulnerability. According to Pew Research, only 34% of small businesses offer retirement plans, and nearly half of small business owners say they can’t afford one—even though 83% believe they should be saving more for retirement.
Why Retirement Planning Is Especially Critical for Female Practice Owners
Women in veterinary medicine face unique financial challenges. Studies show that 60% of working women feel behind on retirement savings, and 25% made no retirement contributions in the past year. Female practice owners often take career pauses for caregiving or are more likely to reinvest in their business than in their personal future. Add to this the longer average lifespan for women, and the need for a comprehensive, tax-smart retirement strategy becomes urgent.
Top Retirement Plan Options for Veterinary Clinics
SEP IRA
- A Simplified Employee Pension IRA is easy to set up and maintain, ideal for solo practice owners or clinics with few employees. Contributions are made by the employer only, up to 25% of each employee’s compensation or $69,000 in 2024, whichever is lower. All contributions are tax-deductible for the business.
SIMPLE IRA
- The Savings Incentive Match Plan for Employees IRA is designed for businesses with 100 or fewer employees. It requires either a 2% fixed contribution or a 3% matching contribution for eligible employees. It's straightforward to administer and allows employee deferrals up to $16,000 for 2024.
401(k)
- This more robust plan can be customized for practices that want to offer higher contribution limits and flexibility. Owners can contribute up to $23,000 in 2025 ($30,500 if age 50+), plus a profit-sharing component. A pooled employer plan (PEP) can reduce administrative burdens for small practices while maintaining benefits.
Cash Balance Plans
- These defined benefit plans allow high-earning veterinarians—especially those closer to retirement—to contribute substantially more each year (up to $265,000+), depending on age and income. When paired with a 401(k), they create powerful tax deferral and retirement growth opportunities.
Tax Credits and Incentives Under SECURE 2.0
- The SECURE 2.0 Act provides generous tax credits to help small businesses start retirement plans. Clinics with 50 or fewer employees can receive up to $5,000 per year for three years to cover administrative costs, plus a credit for employer contributions for five years. These incentives make starting a plan more affordable than ever.
Attracting and Retaining Veterinary Talent
Turnover in veterinary clinics is high—averaging 23% annually. Offering retirement benefits can be a competitive advantage, increasing employee satisfaction and long-term retention. The cost to train and replace a vet tech can exceed $30,000, making retention critical to both profitability and clinic culture.
Integrating Tax Strategy with Retirement
- The right retirement plan can reduce your taxable income, increase cash flow, and build personal wealth. Strategic choices—such as how much to pay yourself as salary versus business distributions, whether to be taxed as an S-corp or LLC, and how to time capital investments—can significantly lower your overall tax burden.
Don’t Overlook Succession Planning
When it comes to funding retirement, nearly 3 out of 4 small business owners plan to sell or transfer their business at some point in the future. However, many haven’t completed a formal business valuation or developed a buy-sell agreement. Creating a succession plan early can help maximize the practice’s value and ensure a smooth transition when the time comes.
Next Steps for Veterinary Practice Owners
Finally, if you own a veterinary practice and are beginning to think about retirement, here are a few strategies to consider:
- Review your cash flow to determine how much you can contribute annually to retirement.
- Compare plan options (SEP IRA, SIMPLE IRA, 401(k), cash balance) based on your clinic size and goals.
- Use federal tax credits to offset startup costs and employer contributions.
- Partner with an advisor who understands both veterinary businesses and financial planning.
- Smart retirement planning doesn’t just protect your future—it empowers you to lead your clinic with confidence today.
About Clear Insight Wealth Management
Clear Insight Wealth Management is a holistic wealth management firm focused on helping business owners, military families, and government employees navigate their finances to the future they want.
As a fiduciary firm, Clear Insight Wealth Management does not earn incentives or commissions for our work; rather, we use a fee-only model to indicate our commitment to our client’s goals.
1) Starting with a clear picture of what wealth means to you and the kind of life you want, we create a personalized step-by-step plan that will help guide you to accomplish your financial goals.
2) Once your financial plan is in place, we help you align your investments with a customized portfolio. We take a strategic approach to building and protecting your assets that considers your motivation, timeline, and priorities.
3) With individual and business tax expertise, we can help you navigate the changing tax code and advise you on what opportunities are best for you. Since tax planning is part of our holistic approach to finances, you can trust that our work together is focused on your long-term goals. Clear Insight Tax can help with your tax preparation needs.
