The percentage of older individuals participating in the workforce today has significantly increased compared to the mid-1980s. The Pew Research Center reports that around 19% of people aged 65 and over are still working, up from only 11% in 1987.
For many baby boomers, the idea of retirement feels more like a concept than a solid plan. We spoke with Kraig Kleeman, CEO of Z-Branding and The New Workforce, who belongs to this demographic, to gain insight into his views. For him, retirement hasn’t materialized just yet.
Financial Considerations
Kleeman doesn’t feel inclined to rush into retirement. He stated that he wants to accomplish certain goals before fully stepping back. “Creating Z-Branding from scratch is something I’m genuinely passionate about,” he noted. “Before making a big leap, you need to ensure your finances are secure.”
To Kleeman, financial security equates to a sense of assurance and the ability to maintain his lifestyle without the worry of depleting savings too soon.
Balancing Work and Retirement
Kleeman admitted that he’s still pondering the timing of his retirement. “I really enjoy running Z-Branding,” he shared. “But the freedom retirement offers is also appealing.”
Instead of abandoning his employees, he’s contemplating a gradual reduction in their hours while keeping them engaged in company activities.
This approach is often referred to as “phased retirement,” which allows individuals to transition into retirement gradually by cutting back work time.
Envisioning Retirement
Though he hasn’t retired yet, Kleeman already envisions his ideal retirement. He sees himself spending more time with family but also traveling or exploring new hobbies that he hasn’t had the chance to pursue—and he recognizes that financial preparedness is key to realizing those ambitions.
“I truly understand the importance of planning,” he emphasized. “I want to budget effectively so I can enjoy my retirement fully.”
Advice for Younger Generations
Kleeman’s straightforward message for younger individuals is to begin retirement planning early. “I’ve witnessed the difference it can make,” he advised.
He also reflected on the journey of retirement, stating, “This is a phase we all navigate differently. As I transition, I’m focusing on aligning my financial goals with my desire for a fulfilling retirement.”
Things to Consider Before Leaving Your Job
Kleeman stresses that it’s never too early to start planning for retirement. Unpreparedness can lead to stress during what should be your golden years. Here are a few considerations:
- Decide if you still want to work: Many contemplate continuing to work after qualifying for Social Security benefits. If you’re thinking of working part-time, discuss phased retirement options with your current employer.
- Understand your financial situation: Catalog all your assets, including investments, savings, and income sources. As a guideline, aim to have saved about ten times your annual income by age 67, though this can vary based on personal circumstances and expenses.
- Formulate a retirement budget: Track your finances over a few months to determine how much you’ll need to support your desired retirement lifestyle.
- Timing for Social Security enrollment: The age you choose to start claiming benefits impacts your monthly payout. Generally, waiting until age 70 can yield significantly higher benefits compared to starting at age 62. Consulting a retirement planning expert can be beneficial in crafting a solid plan.
Starting to think about these aspects early can save potential stress later on.
