Taking the leap with confidence
For many dentists, the decision to go private marks the beginning of the most financially rewarding chapter of their career. Greater clinical freedom, higher earning potential, and the ability to build something genuinely your own. The appeal is real, and so are the results for those who approach it well.
For self-employed associates, often paid based on UDA delivery rather than a fixed salary, the move towards more private work tends to happen gradually. Many dentists retain some NHS commitment while increasing their private income over time. Understanding how this shift affects your financial position is an important part of making the transition work for you.
Martin, a partner at Just4Dentists and an independent financial advisor working exclusively with dental clients, has guided many dentists through this transition. The ones who thrive are not necessarily those with the most experience or the largest patient list. They are the ones who go in with a clear picture of the financial landscape and a plan that makes it work for them.
That’s where this article is here to help.
The NHS pension: know what you have, and replace it wisely
The NHS Pension Scheme is a defined benefit arrangement. It pays a guaranteed income in retirement based on your career earnings, regardless of investment market performance. For dentists still accruing within it through their NHS activity, this is a genuinely valuable benefit and it is worth understanding clearly before reducing your commitment to it.
The encouraging news is that the pension you have already built is yours to keep. It is preserved, index-linked, and will be waiting for you at retirement regardless of when you step away from NHS practice. What changes is your ability to add to it going forward as your NHS earnings reduce. But, this is a gap that’s entirely possible to fill with the right private pension strategy.
Many dentists find that the income uplift from increasing private work, structured efficiently through a limited company where appropriate, allows them to make more substantial pension contributions than they could previously as an NHS associate. The key is redirecting that capacity deliberately, early in your private career, rather than letting it drift. With good planning, your retirement position moving towards private practice can end up stronger, not weaker.
Embrace income variability as a feature, not just a risk
Private practice income works differently to NHS income, but for most associates this is not entirely new. UDA-based earnings already vary depending on clinical output, patient attendance, and working patterns.
Increasing your private workload often introduces a different type of variability. Rather than being tied to contract delivery, your earnings reflect your clinical output, your patient relationships, and the quality of the practice you work within. As those things grow, so does your income.
The variability that comes with this does require a slightly different financial approach. Holding three to six months of personal outgoings in accessible savings gives you a buffer that means quieter months never become stressful ones. Keeping business and personal finances clearly separated, particularly if you operate through a limited company for private income, makes it straightforward to manage cash flow without it affecting your home life.
Dentists who move into private work often find their income trajectory accelerates considerably once established. The early years require patience and structure, but the upside is meaningful. Understanding that journey in advance with the support of a wealth-planning expert, and planning for it rather than reacting to it, is what turns income variability from a concern into a strength.
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Mortgage lending: private dentists are well-served
One of the most common concerns dentists raise about going private is whether it will affect their ability to get a mortgage. The answer, with the right advice, is reassuringly straightforward: specialist lenders understand dental income well, including self-employed associates with blended NHS and private earnings.
The important distinction is working with lenders who know how to assess your actual income rather than applying criteria designed for salaried employees. These lenders will look at your full picture including fee income, dividends, retained company profits, and blended NHS and private earnings where applicable, and lend against it appropriately.
If you are planning to purchase a practice and a home simultaneously, integrated advice that covers both sets of borrowing ensures neither constrains the other. Many dentists are pleasantly surprised by what is achievable when their application is put together by someone who speaks the lender’s language on their behalf.
Retirement planning: taking control of your future
Reducing NHS earnings naturally means taking greater ownership of your retirement planning, and for dentists with growing private income, this is genuinely an opportunity.
The flexibility of private pension arrangements, combined with the tax efficiency available to limited company directors where private income is received this way, means the right strategy can build significant retirement wealth over the course of a career.
The most effective approach treats:
- NHS pension benefits
- Private pension contributions
- ISAs
- And diversified investments
as complementary components of a broader strategy.
The dentists I see retiring most comfortably are those who started making deliberate contributions early as their private workload increased, even modest ones, and let compounding do the heavy lifting over time.
The bigger picture
Increasing your private income is one of the most financially significant decisions of a dental career, and for the majority of dentists who approach it thoughtfully, it is also one of the most rewarding.
Greater earning potential, more flexibility, and the ability to build long-term wealth through both your professional and personal finances are real and achievable outcomes.
The trade-offs are real too, and worth understanding clearly. But they are not obstacles. They are simply the financial landscape of a blended NHS/private career, and with the right planning in place, every one of them is navigable.
The dentists who get the most from this transition are those who plan before they leap, and who keep specialist advice close as their career and income evolve
Martin Febery
Just4Dentists Expert
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FAQs
If I leave the NHS, do I lose my pension?
If you leave the NHS the pension you have already built is fully preserved and will be available to you at retirement. It stays index-linked and secure regardless of when you move to private practice. What changes is your ability to add to it going forward, which is where a good private pension strategy fills the gap, often very effectively given the higher earnings available in private practice.
How much should I hold in cash reserves as a private dentist?
Three to six months of personal outgoings is a good working target. Practice owners with higher fixed business costs may want to sit towards the upper end. Once you have that buffer in place, income variability becomes much more manageable as quieter months simply draw on reserves that busier months replenish.
Does going private make it harder to get a mortgage?
Not with the right advisor. Specialist mortgage advisors, like the partners at Just4Dentists, work with private dentists regularly and understand how to assess self-employed and limited company income properly. Many offer higher borrowing multiples to dental professionals, reflecting the profession’s strong earnings outlook. The key is knowing which lenders to approach, and how to present your application effectively.
Can I build a strong retirement without the NHS pension?
Absolutely. Private dentists with well-structured limited companies can make substantial, tax-efficient pension contributions that build significant retirement wealth over time. Your practice also has real asset value. The most effective approach combines pension contributions, ISAs, and diversified investments alongside your practice, and the income available in private practice makes this very achievable with consistent, early action.
When is the right time to start retirement planning as a private dentist?
As early as possible! Ideally from the moment you make the move. Even modest contributions in the early years of private practice have a compounding effect that becomes very significant over a career. Starting early means you need to contribute less to reach the same outcome, which preserves more income for other priorities along the way.
