Have you procrastinated putting money aside for retirement? Have you withdrawn money from your retirement fund? Do you expect Social Security alone to meet your financial needs in retirement?
If your answer is yes to any of those questions, you’re probably going to find yourself worrying about income when you should be kicking back and enjoying the easy life. Nevertheless, it’s not too late – nor too early – to do something about it.
The American Savings Education Council estimates that 30 percent of Americans are not saving for retirement. An eTrucker.com poll shows that more than half of truckers fall into that category.
Bob Jordan, who drives for Allied Van Lines agent Dirck’s Moving Services out of Phoenix, is one of those. “I wish I could, but the bottom fell out of the moving business. But I’ve still got about 10 years before I retire,” says Jordan, who has been driving for 22 years.
Nick Kmezich, an accountant with First Security Advisors, says that situation is not uncommon. “Through difficult times owner-operators especially have a hard time holding onto their retirement plans,” Kmezich says.
That’s understandable, especially in recent years when fuel has been expensive and, for some owner-operators, freight has been slow. Even in hard times, Kmezich and other advisers say, the cost of retirement should be figured into your cost per mile. “It’s a cost associated with maintaining your business, and you, the driver, are definitely a part of your business,” he says. “It’s a cost, not an option.” Those who have trouble pulling money out monthly for retirement should consider setting up an automatic bank draft that sends money straight to a retirement account.
Financial advisors say you need about 75 percent of your present income to maintain a similar retirement lifestyle, and more if you intend to enjoy much travel. Under current law, if you have average earnings, your Social Security benefits will replace only about 40 percent at best (the current Social Security maximum is about $20,000 a year).
