Financial planning for associate dentists

For many associate dentists, clinical training prepares them to care for patients — but not necessarily to manage the financial realities of self-employment. Without the structure of an employed role, things like pensions, sick pay, and long-term savings require a more hands-on approach.

To explore what this looks like in practice, Julie Reid from The Next Step sat down with Seamus King, Dental Specialist Financial Adviser at Wesleyan Financial Services. With years of experience supporting dental professionals, Seamus shares his knowledge on what every associate dentist should understand to build a strong financial foundation.

Whether you're newly qualified or looking to take more control of your finances, this conversation offers practical, jargon-free advice to help you plan with confidence.

Let’s get into it.

Julie Reid: Seamus, thanks for joining me. Let’s dive right in. You’ve worked with a lot of dentists during your career. They’re trained to care for patients – but how often do dentists apply that same care to their finances?

Seamus King: That’s a great question, Julie. Many associate dentists are incredibly skilled clinically, but when it comes to financial planning, they’re often navigating without a map. Unlike employed roles, associates don’t have the safety net of employer pensions, paid leave, or sick pay. That makes proactive financial planning essential.

Julie: So where should they start?

Seamus: One of the first things to understand is that your income as an associate can vary – sometimes significantly. It depends on factors like NHS delivery, private patient numbers, and deductions like lab bills or surgery fees. That unpredictability can make budgeting feel overwhelming.

Julie: What are your thoughts on how to manage that?

Seamus: Track your income over several months to identify patterns. Don’t base your budget on your best month – use an average to set a realistic baseline. Then, build an emergency fund that covers at least three months of essential expenses. That buffer can help you avoid short-term decisions that might hurt you in the long run.

Julie: Taxes can be confusing, especially for those new to being self-employed. What should associate dentists know?

Seamus: Think of yourself as running a business. Many associates fall into higher tax brackets, but without planning, they miss out on allowances and reliefs. Start your tax planning early – don’t wait until the end of the tax year.

Julie: Any specific tools or strategies?

Seamus: Use your full ISA allowance – currently £20,000 per year – to build tax-free savings. And don’t overlook pensions. The Annual Pension Allowance is £60,000, and contributing can help you reclaim higher-rate tax and manage your income thresholds. Just be mindful of the limits.

Please note, tax treatment depends on individual circumstances and is subject to change in future. The value of investments can go down as well as up and you may get back less than you invest.

Julie: Retirement might feel far off for many dentists at the start of their career. Why plan now?

Seamus: Because the earlier you start, the more options you’ll have. If you work in private practice as a self-employed associate, you won’t be auto-enrolled into a pension scheme, so it’s up to you to take the lead. Personal pensions and SIPPs (Self-Invested Personal Pensions) allow you to save in a tax-efficient way while keeping flexibility around contributions and investment choices.

Julie: What if someone has worked in the NHS?

Seamus: Then it’s important to understand how your NHS Pension benefits fit into your overall plan. The scheme is not the easiest to understand, with multiple scheme sections, stipulations around when you can retire and changes such as those introduced due to the McCloud judgment. Specialist advice can help you make sense of it and chart a realistic retirement path.

Julie: Let’s talk about protection. What should associates consider?

Seamus: Your ability to earn through your clinical skills is your biggest asset. Yet many associates have limited or, in some cases, no sick pay provision. Income protection can replace lost earnings if you’re unable to work due to illness or injury. It can also complement NHS sick pay.

Julie: What about other types of cover?

Seamus: Critical illness and life cover are also worth considering, especially if you have dependants or a mortgage. Just make sure your policy includes an ‘own occupation’ clause – otherwise, you might not be covered if you can work in another field, even if it pays less.

Julie: Final question – how often should dentists review their financial plans?

Seamus: Just like dental check-ups, financial plans need regular reviews. Your goals will change – maybe you’re saving for a house now, but in a few years, you might want to buy into a practice or start a family. Your financial strategy should evolve with you.

Julie: So, it’s not a one-and-done?

Seamus: Exactly. A good financial plan is dynamic. Regular reviews help ensure it stays aligned with your life and career goals.

Julie: Seamus, thank you for breaking this down so clearly. Any final thoughts?

Seamus: Just this – don’t wait until you feel “ready” to start planning. The earlier you begin, the more control you’ll have over your financial future.

This blog is for information and educational purposes and does not constitute as financial advice.