I've been doing this work here in Richmond with Dominion Energy clients for over 12 years now and starting to think about retirement planning. The income can be pretty variable in this business - some months you find a $50k error, other months it's slow. Anyone else in a similar boat thinking about how to plan for retirement with irregular income? I'm wondering if I should be more aggressive about saving during the good months.
Retirement planning for utility auditors - anyone have thoughts?
Phil I've been thinking about the same thing. Been working Duke Energy territory here in Charlotte since 2010 and the feast-or-famine nature of this business definitely makes retirement planning tricky. I've started putting away 25% of every big recovery into a separate retirement account. When I landed that $85k demand charge error last year, a big chunk went straight to savings.
The irregular income is definitely the challenge. I've been at this since 2010 working Duquesne Light and First Energy territory around Pittsburgh. What I do is track my average annual income over rolling 3-year periods and base my retirement contributions on that average, not the monthly fluctuations. Helps smooth out the ups and downs.
Walt that's smart. Here in Cincinnati with Duke Energy I've had years where I cleared six figures and years where I barely made $40k. The key is not lifestyle inflation during the good years. I still drive my 2018 Honda and live below my means so I can save more when the big recoveries come in.
One thing to consider is that as we get older, we probably have more expertise and can command better rates. I'm charging more now for Georgia Power audits than I was five years ago because I know exactly where to look. That experience premium should help with retirement planning in our 50s and 60s.
Rachel makes a good point. I've been working Ameren Missouri territory since 2013 and my hourly rate has definitely increased as my reputation grew. The repeat clients pay well because they know I'll find money. Just closed a $32k power factor correction case that took me two days - that kind of efficiency comes with experience.
Has anyone considered transitioning to more consulting work as they get closer to retirement? I've been doing TEP audits here in Tucson but lately getting more requests to train in-house staff at larger companies. The hourly rate is better and it's less detective work, more teaching.
Omar that's interesting. Up here in Rapid City working with Black Hills Energy I've had a few companies ask about training their facilities managers. Never really considered it as a transition strategy but it makes sense - pass on the knowledge and get paid well for it.
This is a great discussion. I've only been at this since 2021 but already seeing the income variability. Working MLGW territory here in Memphis and some months are $15k, others are $2k. I'm trying to be disciplined about saving the windfalls rather than treating them as spending money.
Randy that discipline early on will pay off. I wish I'd been more consistent about saving when I started with OG&E clients here in Oklahoma City. The first few big recoveries I celebrated a little too much instead of banking them. Live and learn.
One advantage we have is that this work can potentially continue past traditional retirement age. I'm 67 and still finding errors for PPL clients here in Harrisburg. As long as the mind stays sharp and utilities keep making mistakes, there's income potential.
Sylvia makes an excellent point. This isn't construction work - we can do this as long as we want. I'm planning to semi-retire by cutting back to just my best Green Mountain Power clients here in Vermont. Quality over quantity and a more predictable schedule.