I’m a Baby Boomer: Here’s Why I’m Still Not Retired Yet
The share of older adults holding a job today is much greater than in the mid-’80s. According to the Pew Research Center, around 19% of people ages 65 and older are still in the workforce today, while in 1987, only 11% of older adults were working.
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For many baby boomers, retirement remains more of a thought than a solid plan. We interviewed Kraig Kleeman, CEO of Z-Branding and The New Workforce and a member of this older generation, to get his perspective. Here’s what he had to say about why retirement hasn’t yet become a reality for him.
Financial Considerations
For Kleeman, retirement isn’t something he wants to rush into. Before heading into his golden years, he wants to first achieve financial stability.
“Creating Z-Branding from the start is something I do with much passion,” he explained, “and I need to ensure my finances are in order before making a big commitment to leave it behind.”
Financial stability for Kleeman means having the peace of mind and confidence that he can support himself and his lifestyle throughout retirement, without having to worry about burning through his nest egg early.
Learning To Balance Work and Retirement
As for the timing of his retirement, Kleeman admits it’s still a work in progress.
“I enjoy managing Z Branding very much,” he said, “however, I also look forward to the liberty that comes with retiring.”
So, instead of leaving the workforce cold turkey, he’s considering slowly reducing his working hours while staying involved in the company’s activities as much as he can.
The approach that Kleeman is taking is commonly known as “phased retirement,” which means gradually moving toward retirement by reducing the amount of time you spend working. According to Harvard Business Review’s recent survey, 68% of workers age 50 or older would like the opportunity to move into retirement gradually, but only about 36% of global employers offer phased retirement to everyone on staff.
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Ideal Retirement Lifestyle
While Kleeman hasn’t retired yet, he already knows what his ideal retirement lifestyle looks like.
“I imagine spending more time with my family, traveling to remote locations, and perhaps starting some hobbies that I have always been interested in but never had the time to try,” he shared.
However, he’s quick to stress the importance of financial preparation for making those dreams a reality.
“Certainly, I understand the significance of making a budget and planning for the future so that I can enjoy my retirement period fully,” he said.
Advice for the Next Generation: Start Early
Kleeman’s advice to younger generations is straightforward: “Begin your retirement preparations early. Trust me, I’ve seen the difference it can make.”
Wrapping things up, Kleeman reminded us that retirement is a journey we’re all figuring out as we go.
“As I go through this new stage, I am trying hard to balance my financial goals and my wish for an enjoyable retirement time. Please know that if you are in the same situation, you have company. Cheers to the next adventure, whatever it may be!” he said.
What To Consider Before Ditching Your 9-To-5
As Kleeman advised, it’s never too early to start planning your retirement. Plus, going into retirement unprepared can make your golden years unnecessarily stressful. Here are a few things to do before officially leaving the workforce.
Decide if you still want to work: The U.S. Bureau of Labor Statistics (BLS) projects that in 2024, the 65 and older age groups will have faster rates of labor force growth annually than any other age group. So, if you’re thinking about continuing to work even after you qualify for Social Security retirement benefits, you’re not alone. Talk to your current employer about phased retirement or part-time options if you don’t plan to work full time.
Know where you stand financially: You must know where you stand financially before retiring, or else, you could face tons of money problems down the road. If you haven’t already, make a list of all your assets, including investment accounts, savings balance, source of income and insurance policies. A general rule of thumb is you’ll need to have saved 10 times your annual income by age 67 to retire comfortably, though this number can differ depending on factors like where you live and your monthly retirement expenses.
Create a retirement budget: Before ditching your 9-to-5, you’d want to track your income and expenses for a few months so that you have a good idea of how much you’ll need to support your chosen retirement lifestyle. Note that this assumes your retirement lifestyle won’t be drastically different from your current one as you approach that stage of life.
Determine when to start taking Social Security: The age you decide to start claiming retirement benefits will have a direct impact on how much Social Security you’ll receive each month. Generally, if you wait until you’re 70 to start taking benefits, your benefit amount will be much higher than if you were to start receiving the benefits at 62. Consider talking to a financial advisor who specializes in retirement planning to help you map out the best course of action.
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This article originally appeared on GOBankingRates.com: I’m a Baby Boomer: Here’s Why I’m Still Not Retired Yet
