This is the first part in a three-part series on how owner-operators can work toward retirement. See the other two installments in the links below.
Most owner-operators aren’t ready to fully retire to a comfortable lifestyle by their late 60s. Here are key things to consider and ways to build savings – even if you’re starting late.
Americans tend not to save enough for retirement. Owner-operators are no different.
A poll of Overdrive readers, most of whom are owner-operators, shows that more than one in five report having nothing saved for retirement. When a general audience was asked the same question by gobankingrates.com, 14 percent fell in that category.
Those who make little progress in saving for retirement will be dependent on Social Security payments and, if available, any pension payout. In many cases, that won’t be enough to cover $46,000 a year, which the U.S. Bureau of Labor Statistics says is the average annual spending of adults over 65.
Among the clients of Etruckertax, most of whom are owner-operators, about a third have an adequate retirement savings plan in place, says owner Dennis Bridges. “That’s high because we’ve sort of lovingly beat them over the head with it,” he says. Among the owner-operator population at large, those on track for a comfortable on-time retirement would be 10 percent or less, he estimates, based on calls to his office.
For many owner-operators, saving for retirement took a backseat to making ends meet, one of many challenges for the self-employed. Between lack of savings and a love of driving, many are willing to keep trucking beyond their mid-60s.
