Being a truck driver is a great profession. It’s like I get paid to travel for a living, and there’s alot of follow truckers I meet every day that feel the same way.
While it’s not for everyone, some people even choose to be a truck driver as a second career after retiring from their first careers.
At some point there will come a time when your days as a truck driver are up. While I’ve got a few more years behind the wheel, many long haulers are asking themselves at what age to retire and what do I need to be ready to make the switch.
Today we’ll answer those questions and more in this month’s post.
The Mandatory Age For Truck Driver Retirement
While the requirement for retirement may change in the future, currently there is no mandatory age for truck driver retirement in the United States.
This is the reason why some people who have retired from their previous jobs get a second career as truck drivers. In this way, they can still continue to earn and save up further for their retirement. As long as drivers pass their physical exams, are well enough to drive and all other basic truck driver requirements, they can continue with their careers.
Things To Consider When Retiring As A Truck Driver
Even if there is no mandatory age for retirement, some truck drivers choose to retire voluntarily. Some feel they are tired of driving, while others consider their health.
There are also others that have health issues that would hinder them from continuing to drive. When planning to retire, here are a few things you should think about first.
Take a look at your finances and see if it can cover all your expenses and let you live a comfortable and healthy life. Some trucking companies increase the benefits at a rate of about 8% per year that their truck driver delays the retirement. It would also be a good idea to first consult with a financial advisor to make sure of your finances before finally deciding to retire permanently.
Check Your Nest Egg
To check whether your nest egg is enough for your retirement, you need to break down your assets and liabilities in a balance sheet. This will help you know how much your net worth is. With this, you have to consider all your possessions, properties, valuables and other non-monetary wealth.
This also lists down your liabilities like any debt or legal obligations that you have. Also, you need to list down your monthly expenses to help you calculate how much you need to live comfortably once you retire. Additionally, you should also make sure to include expenses in case of emergencies. Budgeting is key to your requirement.
Consider Your Medical Expenses
You may not need it right now but you should also consider medical expenses that you are likely to need in the future. It’s a fact that it would be very difficult to predict exactly how much you will need exactly but it is something that shouldn’t be overlooked. You might want to get health insurance or apply for medicare.
Your Current Debt
If you’re already nearing the age when you want to retire, you should also take a look at any debt that you have. Have you paid your credit cards and loans? See if you have outstanding debts. It’s best to bring down your debt or pay them off before you retire so that you won’t have to figure out where to get money for payments while keeping within your budget.
Debts can cause a big blow to your retirement so make sure you pay them off immediately as soon as you can. Prioritize paying off your credit cards debt first because they are likely to have the highest interest rates.
Picking Out A Retirement Plan
Before your truck driving retirement, it is best to have a retirement plan. There are many available but to choose the most suitable for you. Here are a few options:
This is a common truck driving retirement plan and was created by the US government. With this, truck drivers can start saving without their account being affected by taxes. The non-taxable savings placed in the IRA doesn’t get taxed until it is withdrawn at your retirement.
It is one of your best options if the company you work for doesn’t offer the 401 (k) plan, which will be discussed below. However, you have to take note that the tax bracket that your account falls into in the future is difficult to predict.
This kind of retirement plan isn’t offered by all companies but if yours does, then you should definitely get it. With this plan, a portion of your paycheck will go directly into your savings account. The good thing about this plan is the higher cap on the maximum amount that you can save on your account per year.
This kind of retirement plan is similar to the traditional IRA. However, the main difference is that the money you place into your account gets taxed in the same year as you placed them in your retirement account.
Those who think that they will have a higher retirement tax bracket are likely to choose this kind of retirement. With it, the money you take from your retirement won’t be taxable. It is also chosen by those who are worried about their financial security because it doesn’t charge you with a penalty fee for early withdrawals.