Will Allen on SiriusXM: Cash Flow, Per Diem, and Social Security
- Will Allen
- 6 hours ago
- 4 min read
Will Allen joined Dan Ronan on SiriusXM’s On the Move, Channel 142, on September 1 to talk about the financial challenges facing truck drivers and owner-operators. They discussed saving when income changes from month to month, finding everyday expenses that add up to more than you realize, and understanding how per diem can affect future Social Security benefits. The conversation also returned to the projected 2032 trust fund shortfall we covered last week, with a closer look at what it could mean for drivers, and why years with little or no reported earnings can make retirement planning more challenging.
Saving When Income Is Uneven
One of the challenges for truck drivers is that it’s hard to know what next month’s income will look like. And when you don’t know what’s coming in, figuring out how much to save isn’t easy.
What we’ve found helpful is to start with a small, realistic savings goal—an amount or percentage you think you can put away even in a lean month. Then, when you have a good month, you can save more and make up some ground. The idea is to work toward a target for the year while giving yourself some flexibility along the way. It can take a few years to figure out what works, and that’s okay.
Where the Money Actually Goes
You don’t have to track every penny, but it helps to sit down with your statements from time to time and see where the money is going. Pick a few places you spend regularly and add up what you spent over the year. A purchase that feels small day to day can look very different when you see the annual total.
Subscriptions are another good place to look. Most of us have signed up for something we’ve stopped using or forgotten about. Going through those charges can help you find a few things to cut without giving up anything you actually enjoy.
The Per Diem Tradeoff
A good place to start is your Social Security statement at ssa.gov. Look at the earnings reported for the years you’ve received per diem. Per diem paid under an accountable plan won’t be included, and those earnings help determine your future benefit.
Then ask yourself whether you’re setting anything aside for retirement to help make up the difference. A Roth IRA may be one option. If there’s nothing left to save right now, that’s understandable. But it’s worth looking at your budget and seeing what might be possible, even if you start small.
The Number Social Security Actually Uses
That same statement shows your earnings history year by year. Take a look for any missing or unusually low years. Social Security uses your highest 35 years of earnings to calculate your benefit, so if you have fewer than 35 years, zeros get included in that average.
For owner-operators, years with a lot of deductions can mean lower reported earnings than they might remember. Seeing those numbers can help explain the benefit estimate, and help you decide whether working another year or two could make a meaningful difference.
Social Security’s Future: What Could Happen Before 2032
Dan also asked about the projected 2032 trust fund shortfall we covered last week. It’s understandable that people hear that date and worry about whether Social Security will be there for them.
My view is that Congress will eventually make changes, though it may wait much longer than it should. We saw that in 1983, when lawmakers acted at the last minute to address a similar funding problem. That doesn’t guarantee the same outcome this time, but I don’t think the scenario where Congress does nothing is the most likely one.
The challenge is that the longer lawmakers wait, the harder those adjustments become. That’s why it helps to understand your own benefit and keep building savings alongside it.
Could the Full Retirement Age Move Higher?
We covered four possible changes last week. Raising the full retirement age is one I think Congress will consider, particularly for younger workers who have more time to adjust their plans. Speaking for myself, I’d be willing to wait longer if it helped put the program on firmer footing.
Of course, the details matter, especially for drivers whose work can be physically demanding. Working longer isn’t equally realistic for everyone.
If you’re getting close to retirement, I wouldn’t change your plans based on a proposal that hasn’t become law. But I would look at how much of your retirement income depends on Social Security and how much flexibility you’d have if benefits or the rules change. Clips from On the Move with Dan Ronan, SiriusXM Channel 142. Used with permission.
Sentara Capital is a fee-only registered investment advisor based in Marietta, Georgia. This post reflects our views as of publication and is for general educational purposes. It is not personalized investment, tax, or legal advice or a recommendation to buy or sell any security. Individual circumstances vary, and tax rules and Social Security provisions may change.
Comments