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For many practitioners, dentistry is central to their identity. Understandably, the idea of retirement and life beyond the profession can give rise to uncertainty. Healthcare, unlike other businesses, does not lend itself to sudden exits. A well-planned transition allows practitioners to maintain control, protect themselves legally, and maximise the value of their life’s work.

Plan early

Many dentists delay planning for retirement, often until ill health, fatigue or unexpected circumstances force the decision. Without forward planning, practices may need to be sold under unfavourable conditions or cannot be sold at all. Early planning provides flexibility, financial security, and peace of mind.

Waiting until you are ready to retire to consider an exit strategy is a common mistake. Many practitioners slowly reduce their workload over time, intending to retire gently. However, by doing so without a structured plan, they often reduce not only their income but also the value of their practice – sometimes significantly.

For most dentists a key question is: Will I have sufficient resources to support the retirement I want?

Obtaining financial advice early allows you to structure your business, assets, and investments in a way that supports your long-term goals. The earlier planning begins, the more options remain available.

There is no substitute for good financial advice, and there are many reputable providers who specialise in healthcare business transitions.

Retirement Transition Strategies

In consultation with your financial advisor, one strategy to consider is selling your practice before you fully retire.

Advantages include:

• Maximising the sale value of the practice
• Reducing your workload and administrative burden while continuing clinical work
• Retaining flexibility in work hours without affecting practice saleability.

Self-employed dentists often approach retirement through one of three models:

• Work until unable, then walk away: Typically involving a quick sale of assets only. This approach often returns no more value than a long-term associate dentist might accumulate.
• Sell a mature, profitable practice at retirement: Provides a lump-sum benefit, though fees and taxation may reduce the final amount received.
• Transition gradually through a group/partnership model: This is the most financially advantageous model where a future partner buys into the business years before the senior dentist retires. With the right accounting structure, this can provide tax efficiency and strong long-term returns.

DBA expectations when closing a practice

The Dental Board of Australia (DBA) has a shared Code of Conduct which addresses professional obligations when closing a practice:
“When closing a practice …. Good practice involves:

1. Giving advance notice where possible and as early as possible
2. Facilitating arrangement for the continuing care of all current patients, which may include the transfer or appropriate management of all patient records while following the law governing privacy and health records ….”

Selling your practice

Contracts of sale typically specify transfer of clinical records and outline statutory record-retention requirements (generally 7–10 years). New owners are required to store records securely and provide access as required under privacy legislation.

Closing your practice

If the practice is not sold, you – as the owner – retain responsibility for secure record storage for the statutory period. Domestic storage may not be adequate. Records must be kept in a safe, dry, secure location with controlled access.

Patients should be notified of closure. A letter may trigger requests for record copies, so allow appropriate time for these to be processed – 30 to 60 days is generally reasonable.

Additional ways to notify patients include:
• A recorded phone message providing closure information
• Advising nearby dentists and allowing access to records (with patient consent)

After setting a closure date, avoid beginning treatment unlikely to be completed in time. Where ongoing care is needed, you have an ethical obligation to arrange referral and handover with patient consent.

Under the Health Records Information Act, a reasonable fee may be charged for copying records. Written authorisation is required before records are released to third parties.

Financial and tax records must also be retained for the statutory period.

Notifying other organisations

You will need to contact your:

• WorkCover insurer
• Business and contents insurers
• Public liability insurer

Employees

Deciding when to inform staff of your retirement requires careful consideration. The response may differ depending on whether the practice is being sold or closed. The attitude of the staff may vary in each case – some may be prepared (and indeed prefer) to stay on with the new owner, and will be keen to learn more and to speak with them as soon as possible. In the case of your closing the practice and retiring, your staff will want to find a new employer and will expect you to provide them with an appropriate reference.

Locum work

Practitioners who sell but still wish to work often enjoy locum opportunities. Working in diverse environments from major cities to rural communities can be professionally stimulating and personally rewarding.

Experienced dentists are often sought after for:

• High-end practices
• Project-based work
• Volunteer programs both locally and overseas (e.g. Filling the Gap, YWAM PNG)

A provider number is required for each practice location; your prescriber number remains nation-wide.

Are you really retired?

For regulatory purposes, retirement means ceasing to practise dentistry entirely. This includes providing both clinical treatment and professional advice.

Changes to registration once retired

Practitioners can choose not to change their registration status and to remain fully registered on the Australian Health Practitioner Regulation Agency’s (Ahpra) Register of Practitioners, particularly if they are unsure if they might return to practice at some point. This option requires ongoing compliance with all registration standards including professional indemnity insurance, recency of practice and CPD.

Practitioners sometimes want to remain on the register, but do not wish to return to practice. In such cases, they can seek to amend their registration to that of a Non-Practising Registrant. However, payment of an annual fee is still required.

Most practitioners may decide not to remove themselves from the Register of Practitioners once they have retired.

Insurance – Run-off cover

Run-off cover, protects practitioners when incidents come to light after retirement. It is important that you notify your professional indemnity insurer once you have fully retired and specifically ask for your policy to be classified as “in run-off cover”. Guild Insurance provides run-off cover to Guild insureds who retire.

Life in retirement

There is no substitute for good professional financial advice and no excuse not to consult a financial planner who can assist you looking to the years ahead in planning for a successful retirement.