Planning Your Retirement as a Physician at University of Pittsburgh Medical Center (UPMC): A Comprehensive Guide

Retirement is a major milestone—especially for physicians whose careers are not only professionally demanding but also personally rewarding. If you’re considering retiring from UPMC, careful planning can ensure a smooth transition, protect your financial security, and help you make the most of your post-career years. Here’s what you need to know.

1. Understand Your University of Pittsburgh Medical Center (UPMC) Retirement Benefits

UPMC offers a multi-component retirement program for physicians, which typically includes:

• Cash Balance Plan (defined benefit pension): This employer-funded plan grows annually based on your eligible pay and years of service. Once vested, you’re entitled to a guaranteed retirement benefit, which can be paid as a lifetime annuity or lump sum.

  
  

• Savings Plan / 401(a)/403(b) style plan: Physician contributions, combined with UPMC’s matching contributions, can significantly boost your retirement nest egg.

  
  

Tip: Review your latest UPMC benefits statement or Summary Plan Description (SPD) to confirm your accrued balances, vesting status, and payout options.

2. Know the Cash Balance Plan Details

The Cash Balance Plan is especially valuable for long-tenured physicians. Key points include:

• Annual retirement credits: Based on a formula tied to your age and service at year-end, typically ranging from 2.5% to 5% of eligible pay.

  
  

• Vesting: Physicians are typically fully vested after three years of service.

  
  

• Growth: Your account accrues interest annually based on the plan’s designated rate (typically the 30 year Treasury rate, to our knowledge with UPMC).

  
  

• Payout options: Typical cash balance payout options include lump sum or lifetime annuity, with optional survivor benefits.

  
  

Tip: If you’re approaching retirement, calculate how different payout options impact your income and taxes. For example, taking a lump sum may allow reinvestment flexibility, while an annuity ensures lifetime income.

3. Timing Your Retirement

Your retirement date can affect both your financial security and lifestyle:

• Normal retirement age: Typically corresponds with full Cash Balance benefits without early retirement reductions.

• Early retirement: Available under certain conditions, but may reduce monthly pension payments.

• Tax planning: Coordinate distributions from your Cash Balance and Savings Plan accounts to minimize tax liability. Consider consulting a financial advisor familiar with physician retirement planning.

• Ability to convert assets into sufficient income to meet your needs. This is highly dependent on your savings amount, interest rates and what you choose to invest in.

4. Consider Healthcare Coverage

Healthcare is a major consideration for physicians retiring before Medicare eligibility (age 65):

• UPMC may offer retiree health benefits, but coverage rules, premiums, and deductibles vary.

• Review COBRA options and supplemental insurance plans to bridge any gap until Medicare coverage begins.

• Evaluate long-term care insurance, especially if you anticipate needing care later in retirement.

  
  

5. Plan for Life After Medicine

Retirement is more than a financial decision—it’s a lifestyle shift:

• Clinical work vs. phased retirement: Some physicians choose part-time consulting, locum tenens, or teaching to stay engaged while reducing workload.

• Professional transition: Transfer patient panels responsibly, wrap up administrative duties, and mentor colleagues to ensure continuity of care.

• Personal fulfillment: Many physicians pursue hobbies, travel, volunteer work, or research projects in retirement. Planning for these activities helps create a meaningful post-career life.

  
  

6. Key Action Steps Before Retirement

1. Review your benefits: Check your Cash Balance and Savings Plan balances, payout options, and healthcare coverage.

2. Meet with HR or a retirement counselor: Confirm eligibility, vesting, and retirement paperwork deadlines.

3. Consult a financial advisor: Assess investment strategy, rollover options, tax implications, and Social Security timing.

4. Plan your timeline: Decide your last working day, transitions for patients, and phased retirement options.

5. Prepare your personal life: Update wills, trusts, and beneficiary designations to align with your retirement goals.

6. Monitor UPMC's credit rating - just google "UPMC credit rating" periodically if you have a large amount of money in the cash balance plan as this money can disappear if UPMC is a non-governmental non-profit, which we believe it is, and they get into financial trouble (see the Steward Bankruptcy links below)

   
   

Conclusion

Retiring from UPMC as a physician is a complex but rewarding process. Understanding whether to rollover your retirement accounts, and what investments are available to generate sustainable long term income can be important for retiring with dignity and comfort.

Because UPMC's compensation can sometimes be on the lower end of the scale, compared to other employers it can be extra important to be efficient with investments.

Talk with a fiduciary financial advisor today.

At D.R. Harris & Co. we focus on clients that are within 5-10 years before or after their retirement date at UPMC.

If you are a physician at University of Pittsburgh Medical Center (UPMC) within 5-10 years pre or post retirement from UPMC and you'd like to talk with a D.R. Harris & Co. financial advisor - fill out the following form to request a 10 minute introductory call.

During the introductory call we'll discuss your goals, what you are looking for and whether we might be a good fit to talk further and potentially work together.

Disclosure: This article is written for educational purposes only. Neither Daniel Harris nor D.R. Harris & Co. is your financial advisor unless you have a signed written advisory agreement with us. While we believe the information in this article is correct as of the time of its writing on 11/11/25, you should also do all of your own research and talk to your own advisors before acting on any information you read about in this article. Good resources to learn about your retirement benefits include your HR and benefits departments at UPMC.