Five things every associate dentist needs to know about financial planning

By Seamus King, Dental Specialist Financial Adviser at Wesleyan Financial Services

As an associate dentist, you’re trained to educate, diagnose, treat, and plan ahead for your patients. But how well are you applying that same precision to your finances?

Without the financial framework that comes with being an employed clinician — like an employee pension, paid leave, or sick pay — your financial health relies on proactive treatment planning. That’s where tailored financial advice can help.

Here are five key areas every associate dentist can benefit from considering as part of a robust financial plan.

1. Understand your income – and plan for variability

Years of study equips you with the clinical skills to treat patients — but it doesn’t prepare you for the realities of self-employment. Managing your income, budgeting for quieter months, and navigating financial jargon are all part of life as an associate — yet they’re rarely covered in training.

Unlike salaried roles, your earnings as an associate can fluctuate significantly. Income may depend on NHS delivery, private patient uptake, and deductions like lab bills or surgery fees. That variability can make personal financial planning feel uncertain — or even overwhelming.

Start by tracking your income over several months to understand your earning patterns. Don’t base your budget on your highest-grossing months — instead, use an average to set a realistic baseline. From there, you can build an emergency fund that covers at least three months of essential costs. This gives you breathing room during quieter periods or for tax bills, so you’re not forced into short-term decisions with long-term consequences.

Understanding your income is essential for making informed financial choices — and getting the right advice can help translate numbers and acronyms into a strategy that works for your personal circumstances.

2. Get to grips with tax – and make it work for you

As a self-employed dentist, you’re not just managing your clinical work — you're running a business. And while you might be used to focusing on treatment plans and patient outcomes, managing your tax position requires just as much forward thinking.

Many associate dentists fall into the higher or additional rate tax bands — but without the right planning, you could be missing out on valuable allowances and reliefs.

Rather than scrambling to maximise your tax-efficient allowances before the end of the tax year each April, start your planning well before. Make full use of your annual ISA allowance to build tax-free savings – this is currently set at £20,00 per annum (with a separate £9,000 allowance for junior ISAs per annum).

Remember you also have the Annual Pension Allowance (£60,000 per annum). Pension contributions can be a highly effective way to reclaim higher-rate tax and bring your income below thresholds like the child benefit or personal allowance taper. Just keep an eye on breaching the Annual Allowance threshold.

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.

3. Build a retirement plan that suits your career path

In dentistry, prevention is better than cure — and the same goes for retirement planning.

If you mainly work in private practice as a self-employed associate, you won’t be automatically enrolled into a pension scheme, so it’s vital to take the lead early. 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.

If you mainly work under the NHS or have done so previously, you may have some accrued benefits in the NHS Pension Scheme — and it’s important to understand how these interact with any future plans. The NHS pension 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.

Getting specialist guidance can help you chart a realistic path to retirement, whether you feel you would like to retire partially, early or even factor in practice sale proceeds.

4. Protect your biggest asset: you

As a clinician, you often focus on your patients’ wellbeing — but what happens if your own health stops you from working?

Your ability to generate income through your clinical skills is one of your most valuable assets. Yet many associates have limited or, in some cases, no sick pay provision. Income protection can step in to replace lost earnings if illness or injury forces you to take time out of practice. It can also work in conjunction with your NHS sick pay.

On a related note, you may want to consider critical illness cover and life cover, especially if you have dependants or financial responsibilities like a mortgage.

For critical illness cover and income protection, it’s important to check whether you have an ‘own occupation’ clause, or you might be at risk of being denied a claim if you can get a job in a new field, even if it pays substantially less.

5. Financial plans need regular health checks

Just as a patient wouldn’t (or shouldn’t) expect one dental appointment to safeguard their oral health for life, a financial plan isn’t a one-time fix. It needs regular check-ups to keep it on track as life changes. What made sense at the start of your career might not reflect where you are now — or where you want to be next.

Perhaps your initial goal was to save for a house deposit, but now you’re considering a move into private practice, starting a family, or even buying a share in a practice. Each stage of your professional and personal life brings new priorities — and your financial plan should adapt accordingly.

That’s why regular reviews are essential.

Let’s put the right plan in place

At Wesleyan Financial Services, we understand the unique pressures and opportunities that come with life as an associate dentist. From protecting income to planning retirement and everything in between, our dental Specialist Financial Advisers are here to support your financial wellbeing — every step of your career.

Book a conversation by visiting wesleyan.co.uk/dental or calling 0808 149 9416.

Please note: Charges may apply. You will not be charged until you have agreed to the services you require and the associated costs. Learn more at www.wesleyan.co.uk/charges.

About Seamus

Seamus King is a dental Specialist Financial Adviser at Wesleyan Financial Services, supporting dentists, their families and their practices with financial planning to secure their financial future.

Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.