Get Ready for the Boomerangs
Although the recession has likely delayed some of their retirement plans, there is no question that at some point in the future the Baby Boomers will retire. A number of experts are predicting that after they’ve retired from the workforce many will be looking to return for what’s now being called an “encore” career.
For the World War II generation (demographers often call them the “Traditionalists”) retirement was the happy end and the reward for a long working life. For the Baby Boomers, who have redefined pretty much everything in their lives, retirement may just be a transition to an all-new encore career or “a new stage of work after a midlife career,” says Phyllis Segal, vice president of Civic Ventures, a nonprofit focused on redefining the second half of life.
The recession, which has battered everyone’s retirement savings, has had a severe effect on those already out of the workforce. Many newly retired Boomers are now in the uncomfortable position of having to revisit their retirement plans and consider how to replenish their portfolios.
An obvious solution is to seek employment. An increasingly popular choice is to re-enter the workforce as a contingent worker. The growing acceptance and wisdom of the flexible workforce will be an enabler for encore careers.
Between 5.3 million and 8.4 million people ages 44 to 70 already are involved in encore careers, according to a new survey by Civic Ventures and the MetLife Foundation, a philanthropic arm of the insurance giant. A total of 3,585 people were interviewed by research firm Peter D. Hart Research Associates. Half of those in the survey who don’t have encore careers would like to pursue them. Yet they face a number of obstacles.
“The older workers and retirees I study would like to do something meaningful or just make connections with people,” says Phyllis Moen, the Endowed McKnight Presidential Chair in sociology at the University of Minnesota. “They can’t find flexible jobs, though, and they don’t want to work full time anymore. They don’t see the kinds of situations they want.”
Moen says retirees with non-disabling but chronic health problems want to work as much as those who are in good health. They also need flexibility so they can manage their health concerns, but can’t find it.
Most people already in encore careers, however, report sufficient flexibility, even among the 59 percent of survey respondents working 40-plus hours a week. Of those, 73 percent have the flexibility they desire, and 85 percent have enough time outside of work to pursue their interests.
“Flexibility is not just about the number of hours you work but about having control over your time,” Segal says. “The type of work you do and the organization you work in can increase that control, even if you’re working full time.”
Not many people today can sustain themselves on retirement income and Social Security. Segal also shared that, “Employers need good, experienced, passionate candidates. People in encore careers are a potential talent pool with ability, commitment and a passion to do the work.”
Laws that constrain post-retirement employment and corporate policies mandating traditional work schedules also pose obstacles to encore careers, but Segal thinks the necessary changes can be made.
For encore careers, “We need to help social sector employers, nonprofits, government and others become aware, create pathways and training programs for individuals and help individuals find ways to hook up with employers.”
Such pathways are being built. The federal Partnership for Public Service, aimed at bringing talent into government, makes a point of recruiting 50-year-old-plus workers. Several states, including Arizona, Maryland and California, are setting up offices and task forces to recruit older adults to fill vacant jobs and help their communities.
Two bills have been proposed that could help. The Incentives for Older Workers Act, introduced by Sens. Herb Kohl, D-Wisconsin, Gordon Smith, R-Oregon, and Kent Conrad, D-North Dakota, would remove barriers to phased retirement and help people return to work after their midlife careers have ended. For those who postpone receiving Social Security, the act would extend the retirement-delay credit from age 70 to 72.
In this far-reaching discussion there is one certainty: those nonprofits, government agencies, and for-profit businesses who figure out how to find and retain Baby Boomers coming out of retirement will be at a significant advantage when the war for talent heats up. These strategic organizations will greatly benefit from the knowledge and experience which the Baby Boomers can bring back into the workplace.
At M Squared Consulting our mission is to help clients solve critical business problems. Typically this involves getting clarity around the problem, defining a project, and then identifying the expert from our Consultant Network who can deliver the expected results. The M Squared Consultant Network, and the value we can deliver to clients, will likely grow as many Baby Boomers elect to re-enter the workforce as project-based professionals.
