Retirement can seem like a distant concern. The day-to-day demands of running a business—managing teams, keeping projects on schedule, and controlling cash flow—often push long-term planning to the back burner. But the truth is, the earlier you start thinking about your eventual exit, the more options you’ll have.
Retirement shouldn’t just be a date on the calendar. It should be a carefully constructed plan that gives you freedom, flexibility, and financial security when you’re ready to step back. Just as every successful project begins with a plan, your retirement should start with a clear vision.
Social Security is Not Enough
The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, boosting monthly benefits for about 71 million Americans beginning early next year. However, rising health care costs may offset much of that increase.
Medicare trustees project that the standard Part B premium — which covers doctor visits and outpatient services — will jump 12% to $206.50 in 2026, with deductibles expected to rise at a similar pace. Seniors with supplemental coverage could face even higher out-of-pocket costs.
When coupled with inflation and tariffs driving up prices on everyday essentials, many retirees may see their cost-of-living adjustment disappear almost as quickly as it arrives, leaving them struggling to keep up with expenses.
These growing financial pressures underscore why retirement planning should start early—long before you’re ready to stop working. By setting up a plan early in your career, you gain flexibility and control over how you spend your later years, rather than reacting to rising costs or unexpected changes.
Retirement Is More Than Stopping Work
Too often, retirement is treated like a finish line. In reality, it’s a new phase of life—one that can be as rewarding as your working years if you plan for it. Ask yourself:
- Do you want to slow down and spend more time with family?
- Would you like to start a second career in consulting?
- Are you interested in mentoring younger professionals or giving back to your community?
- Or is travel, hobbies, or writing a book part of your next chapter?
The clearer your vision for life after work, the easier it becomes to build a financial and business strategy that supports it. Without that clarity, you risk stepping into retirement unprepared—or worse, being forced into it without a viable plan.
Why You Should Start Early
Early retirement isn’t always optional—it can be a necessity. The physical and mental demands of work often push owners to step back sooner than planned. If you wait until you’re ready to retire to start thinking about it, you’ve already missed opportunities. Starting in your 30s or 40s gives you decades to:
- Take advantage of compounding returns in retirement accounts.
- Implement tax-saving strategies like SEP IRAs, SIMPLE IRAs, or defined benefit pension plans.
- Build a company that can thrive without your constant involvement.
- Develop a succession or exit strategy that preserves both your family’s wealth and your business’s legacy.
Treat Your Business Like an Asset
Your business isn’t just your livelihood—it’s likely your largest asset. Building it with the end in mind means making decisions that enhance its long-term value, not just its short-term profitability.
Ask yourself: could your company run without you? Would a buyer, investor, or next-generation leader find it valuable? Businesses that depend heavily on one owner’s relationships or daily oversight are more challenging to transition and sell.
By focusing on strong systems, leadership development, and long-term contracts, you position your business as an asset others will want to own and continue operating.
Putting the Pieces Together
Building a retirement plan with the end in mind means weaving together several key elements:
- Tax planning to maximize savings today while securing future income.
- Succession planning to decide whether family, partners, or outside buyers will take over.
- Estate planning to protect your business and family wealth.
- Lifestyle planning to make sure your personal goals align with your financial and business strategies.
This isn’t just about money; it’s about building the life you want and ensuring your hard work pays off for you, your family, and your employees.
Final Word from Sal
“As a business owner, you’d never start a project without a plan. Your retirement deserves the same careful planning. Build with the end in mind, and you’ll create not just a business, but a legacy.”
Ready to plan your exit strategy?
Lawson, Rescinio, Schibell & Associates has decades of experience helping business owners align strategy, tax planning, and retirement goals. Contact us today to start building your future.
About the Author
Salvatore Schibell, CPA, CFP®, CGMA, MS Taxation, MBA, is the tax partner at Lawson, Rescinio, Schibell & Associates, P.C. He specializes in helping business owners maximize the value of their companies and execute successful succession strategies. Sal can be contacted at 732-539-7328 or salschibell@lrscpa.com.
Disclaimer: This content is for informational purposes only and should not be considered professional advice.