You already know that being a Journeyman Lineman is a physically challenging job. For most people in this career, that means a retirement that may come earlier than the retirements of their friends and family of similar age.
Have you given much thought to how to retire as a Journeyman Lineman? Like most people considering retirement, some forethought can help better prepare you to face retirement – no matter how far away it is.
Top 5 Things Journeyman Linemen Should Think About for Retirement
Consider these important considerations for Journeyman Linemen considering retirement and speak to your financial advisor to create a plan that matches your unique goals.
#1: Retirement accounts can be confusing.
Utility workers typically have very confusing retirement plans. This is usually driven by when the employee was hired, or if employees were union or non-union. These retirement plans can be completely different!
This should not be looked at right before retirement. Talking through issues makes things so much easier for planning. There needs to be a complete review of all options of retirement accounts. Simply doing whatever someone else does at work is not a good decision. Understanding your plans and options is immensely important because your life is different than others. This is why focusing on someone who specializes in your area of employment is a huge advantage. You don’t need to know how every piece works like wiring a new transformer to a pole, but you should be aware of what not to touch in retirement accounts.
#2: Health insurance and Medicare are big considerations.
You probably spend a significant portion of your career doing physical labor. You’ve put it on the line for years, so healthcare analysis is a must. Evaluating all Medicare options, when available, becomes a very important decision. There needs to be detailed decision on Medicare supplements while in retirement so you have ample coverage.
#3: Retirement might not mean the end of employment.
What happens when a utility worker wants to trade in their hard hat for a new hat? How much income can they can make without it impacting Social Security is a key consideration. Social Security is a key contributor to linemen in retirement and deciding when to take it requires a comprehensive review.
#4: Taxes can be minimized with proper planning.
Since lineman usually have multiple buckets of retirement, there needs to be a thorough review of what accounts are being utilized to minimize taxes. Nobody wants to pay more in taxes during retirement and because utility workers have multiple buckets, this needs to be analysis driven.
#5: Consider risk tolerance for investments.
No different than any other type of worker, utility workers need to have the right amount of risk. What separates the utility worker is that they sometimes have pension assets that have been hanging out there for many years.
This can be a key piece in making good decisions. We should be looking at your 401(k) options each year to make sure things are in alignment with family goals. There must be a balance between the pension and other retirement accounts to provide for adequate cash flow in retirement so the individual can focus on life instead of administrative things. Planning is key!
Ready to prepare for retirement as a Journeyman Lineman? Schedule a conversation.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.
