MONEY Second Career

When You’re Bored Silly in Retirement

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Martin Diebel—Getty Images

After taking a break from your career, you may need a break from retirement. Here's how three retirees found their next act.

Ah, retirement! Playing golf whenever you like. Fishing when the mood strikes. Cocktails in the afternoon and barbequing on the patio. But what do you do when you try out retirement and you’re bored stiff?

Ask Ken Howard, 67, of Greer, S.C., who built a successful trash hauling business and sold it to Waste Management in 1997. “I was really looking forward to getting rid of all the everyday headaches that come from running a company,” Howard recalls. So he built a house on a golf course, but soon found that after “playing a good bit of golf I got bored.”

His retirement lasted about five months.

Howard then bought a car wash…and then another….and then another. He now has eight. He has also bought a septic pump business (largely run by his son and nephew) and owns a small real estate investment company.

“I still get excited about cutting a deal,” he says. “Doesn’t matter if it’s $200 or $200,000.” These days, Howard says, he spends a lot of time at his family’s lake house, “but when I am in town I’m usually at the office.”

Even Del Webb Got Bored

Former utility executive Jackie Hauserman, 72, took a retirement package in 1998 when her company, Centerior Energy, was bought. She moved from Ohio to Florida, first to Naples and then to Bonita Bay. Retirement didn’t take, so Hauserman got a real estate license in 2001, at 59, and has been selling for John R. Woods Properties ever since. “I have been really busy. It is fun,” she says.

Even Del Webb, developer of America’s most famous retirement community — Sun City, near Phoenix, Ariz. — couldn’t live the life of leisure. A 1962 Time cover story about him said: “Del Webb, the hulking, slope-shouldered, long-striding 63-year-old who hates to be called Delbert, could not stand the life in one of his own Sun Cities for more than a few days — or a few hours.” He preferred working.

Here’s the thing I’ve learned while researching my new book, Unretirement: Most people desire to live their third age doing something between full-time work and full-time golf. And many new retirees find themselves easily bored without working part-time, even if they don’t need a paycheck.

Certainly, that sentiment was repeatedly expressed at a recent talk I gave at Verrado, a new multigenerational development outside Phoenix, where residents found the initial joy of sleeping in and enjoying an early cocktail faded with time. All were now working part-time or looking for the right retirement job.

The Shock of the New

The swing from racing to embracing leisure to seeking work isn’t really surprising. Put it this way: You spend many years holding down a full-time job (or multiple part-time jobs), so freedom from bosses and job stress is liberating at first. Many people have a bucket list of delayed projects and postponed travel, too. But… Your career and the expertise you’ve built up over a lifetime are also a big part of who you are.

So putting it all behind you can be a shock.

“After awhile, you then wake up and something isn’t quite right,” says Joel Larsen, a certified financial planner at Navion Financial Advisors, in Davis, Calif. “Successful retirement means finding fulfillment and meaning. And a lot of fulfillment and meaning comes from being good at what you do.”

4 Myths of Aging and Retirement

His insight echoes the results from the recent Merrill Lynch survey, Work in Retirement: Myths and Motivations, Career Reinventions and the New Retirement Workscape.” Conducted in partnership with Age Wave, the demographic consulting firm, the survey disputes four popular myths about aging. They are:

  • Retirement means the end of work
  • Retirement is a time of decline
  • People only work in retirement because they need the money (the reality: meaning and purpose matter, too)
  • New career ambitions are only for young people

I’ve grown convinced that most people need to take a break from their careers — they need to retire — before they can Unretire. It takes a break to figure out the next stage.

Adopting a Fresh Perspective

“You have to get out of the work mindset and take a fresh perspective,” says Ellen Griggs, 59, an excellent example of someone who has taken deliberate steps toward Unretirement.

Griggs had a successful career in finance with some storied firms (Paine Webber and Strong Capital Management among them) as Chief Investment Officer, Chief Operating Officer, Client Advocate and Investment Consultant. In 2011, at 56, Griggs took a year off, traveling spending time with her family and working on a 160-year-old home on Cape Cod.

She also hooked up with Boston-based New Directions, a career transition organization focused on helping executives and professionals figure out what’s next. “During my career I had never been introspective about what I was going to do when I retired,” she says. With New Directions, “I got to kick the tires.”

She’s since ended up filling her days with a mix of for-profit and not-for-profit activities, including being a member of the philanthropic trust board at the Boston Medical Center and a board director at Evanston Capital.

How to Beat Boredom in Retirement

So, what should you do when playing golf isn’t enough and you want more meaning and purpose in retirement?

Reach out. Talk to your network of friends and former colleagues who know your skills and strengths; ask them what they think you should do next.

If you’ve decided what field you’d like to migrate into, part-time, attend a local industry meeting and find out how others made their transition. This is a low-cost way to glean information and make contacts.

Potentially even more powerful is hooking up with similarly challenged retirees who’ve decided to put their leisure days aside.

For instance, Experience Matters in Phoenix matches talented private sector workers looking for their next act with community-based nonprofits. Similarly, Shift is a Twin Cities-based organization with a goal of guiding midlife life transitions toward “purpose, passion and a paycheck.” And the Encore Fellowships Network is another path for experienced professionals who want to devote time at social-service organizations.

Another resource: your local community college. These schools are creating courses and meeting spaces for boomers looking for a next act. You can look up programs near you at the website for the American Association of Community Colleges’ Plus 50 program.

It’s a safe bet that in coming years, people will talk less about golf and leisure in retirement and more about preparing for a new stage of productive and creative work in their Unretirement.

Chris Farrell is senior economics contributor for American Public Media’s Marketplace and author of the forthcoming Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community, and The Good Life. He writes about Unretirement twice a month, focusing on the personal finance and entrepreneurial start-up implications and the lessons people learn as they search for meaning and income. Tell him about your experiences so he can address your questions in future columns. Send your queries to him at cfarrell@mpr.org. His twitter address is @cfarrellecon.

More from Next Avenue:

What Retirement Is Really Like

Avoid Living Unhappily Ever After in Retirement

Know Your Level of Activity for Retirement

MONEY Ask the Expert

5 Strategies for Finding Meaningful Part-Time Work In Retirement

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Robert A. Di Ieso, Jr.

Q: I want to find part-time work to bring in extra income when I retire next year. But I don’t want to be a greeter at Walmart. How do I find a job that’s meaningful but still flexible enough for me to enjoy my retirement life?

A: Working in retirement has become the new normal. Nearly three-quarters of workers 50-plus say their ideal retirement will include working, according to a survey by Bank of America Merrill Lynch and Age Wave. But they also want a job that is flexible and fulfilling. Some 62% of working retirees said staying mentally active was the most important reason to work vs just 31% who said they simply needed the money.

“A lot of people are in the same boat. They need to bring in some income and are happy to work but don’t want to go from a professional career to something mindless or boring,” says Tim Driver, CEO of RetirementJobs.com. Still, it’s often challenging for an older worker to find that combination. If you can, start the hunt while you’re still working and your skills are up to date—that way, you can leverage your current contacts. Here are five more tips to consider:

Look to your employer. If you like what you do and want to still use your professional expertise, a natural place to start is with your current employer, says Nancy Collamer, a career coach and author of Second Act Careers. “It might be possible to downshift into a part-time or seasonal schedule, freelance or be on-call as an in-house temp.” For advice on how to ask for a flexible work arrangement, go to WorkOptions.com.

Line up new clients. Does your career lend itself to consulting or freelance project work? Many fields do, from graphic design and event planning to tax advising and tech services. Consulting or freelancing is an ideal retirement job for retirees because of the flexibility it gives you to choose your projects and how much you want to work, says Driver. There are a number of sites that connect older workers to project work, including Driver’s RetirementJobs.com and RetiredBrains.com.

Fill in at a high level. For mid- and higher-level executives, another option is to temp as an interim executive. Interim execs fill an existing position while the company searches for a permanent replacement. It’s a great option if you still crave the prestige and pace of the executive life, but also want the flexibility to enjoy time off in between assignments, says Collamer. The Riley Guide lists firms that specializing in placing interim execs.

Find your passion. If you want to connect with work that you feel is most meaningful, you may be able to transfer your professional skills to a non-profit that focuses on issues important to you. “While nonprofits depend heavily on volunteers, most have at least a few paid staff positions,” says Collamer. Start volunteering now and see what opportunities are available. Nonprofits with tight budgets may be more open to part-timers. Check out non-profit job sites such as Bridgespan, Idealist and NonProfitJobs. Another good resource is Encore.org, which helps older workers transition to careers with a social purpose.

Seek adventure. Finally, if you’re looking for something totally new, check out CoolWorks.com’s Older and Bolder section. It is aimed at retirees looking for seasonal or temporary jobs at national parks, lodges, ranches and other outdoor destinations.

Do you have a personal finance question for our experts? Write to AskTheExpert@moneymail.com.

MONEY retirement planning

How to Ease Into Retirement on Your Own Schedule

Man checking wrist watch
Getty Images

More employers are offering phased retirement programs, which give you more flexibility and let you work fewer hours. Here's how to swing it at your job.

Older workers are a hot topic among HR professionals these days, especially since the share of the labor force of people 55 and over is projected to rise to 25% by 2020. That conversation will increasingly shift toward redesigning corporate benefits for them—especially helping older employees phase into retirement.

But what are firms actually doing to ease this transition and what should you do if you’d like yours to let you gradually move from full-time to part-time and eventually no-time?

Ad Hoc Deals for Phased Retirement

Typically, motivated older workers have had to try negotiating ad hoc arrangements with HR or their boss for gradual exits out of the company, perhaps with part-time contracts in hand. “If employers would accelerate the drive for flexible work arrangements, everyone would be better off,” says Richard Johnson, labor market expert at the Urban Institute. “Flexibility is important.”

But some firms have made strides toward offering their employees greater job flexibility. A Bank of America Merrill Lynch survey of 650 C-level executives and human resources and benefit plan leaders found that half of the employers offer flexible or customized work schedules to retain older workers. A third offer continuing education and development opportunities, while 22% let employees work remotely and 21% offer extended benefits to older employees, such as cafeteria plans that allow for tailoring benefit packages.

How Employers Are Changing

Until fairly recently, the term retirement in the workplace signaled the day an older employee left the organization to enter a lifestyle of leisure. At least that was the image. But a number of far-sighted managements now recognize that the work-and-retirement divide is less true today and that realization will likely affect the design of employee benefits.

Case in point: Intel. Like all big, dynamic companies, the Silicon Valley behemoth offers its employees a good benefits package, including retirement savings. But Intel also supports employees phasing into retirement. Recently, the company has experimented with several new pilot programs.

For instance, U.S. employees eligible to retire from Intel can apply for an Encore Career Fellowship. That helps them ease into the next stage of their lives by leveraging their skills, evoking their passions, and making an impact in their communities through a short-term stint at a local nonprofit.

“Creating a culture that supports our employees as they prepare and plan for retirement is important,” says Amber Wiseley, Intel Retirement Benefits Strategist. “Our employees are looking for different options to reimagine retirement and are seeking opportunities to continue to have an impact on society.”

Jobs With Built-In Flexibility

A comparable conversation is taking place far from Silicon Valley, at Herman Miller in Zeeland, Mich., where about a quarter of the company’s workforce is 55+. Does that mean in five years Herman Miller will suffer an enormous outflow of employees heading into retirement? Doubtful.

“The old model that people will retire at 62 and they’ll pack up their belongings and move to Florida is really dated,” says Tony Cortese, Herman Miller’s senior vice president for human resources. “I don’t think that’s the reality we confront.”

Still, Herman Miller execs worry about losing their older employees’ skills and knowledge too quickly. So the company has instituted programs with built-in flexibility. For example, workers get to take six to 12 consecutive weeks off during the year. Employees aren’t paid during that time, but keep their benefits and length of service toward their pension. Says Cortese: “We’ve had people who are 55 or older say, ‘I don’t know if I’m ready for retirement, but I’m going to try this instead.’”

Herman Miller also recently rolled out a “flex retirement” plan, allowing an employee who’s 60 or over and has at least five years of service at the company to plan an exit over six months to two years. The retirement decision is irreversible and, in return for the planned reduction in hours, the flex-retirement employee puts together a knowledge-transfer plan to teach the ropes of his or her job to a replacement. Observes Cortese: “They say, ‘I’m ready to retire, but I’m not ready to go today.’”

Letting Full-Time Workers Go Part-Time

At Baptist Health South Florida, the largest not-for-profit health care organization in the region, employees who are at 59-and-six-months who have been with the company for 10 years or more can begin drawing on their retirement savings and still work part-time.

AGL Resources, a natural gas distribution company based in Atlanta, Ga., lets its retired workers return on a part-time or project basis and participate in company benefits, such as its 401(k) plan. The National Institutes of Health in Bethesda, Md., which Next Avenue recently said may be America’s best employer for older workers, is famous for its flexible work schedules and telecommuting opportunities.

A critical initiative that will inform the Unretirement movement is the federal government’s new phased retirement program. Starting in November, many full-time government workers with at least 20 or 30 years of service who are nearing retirement age can apply to work a part-time schedule while drawing partial retirement benefits. The program also requires participants to spend at least 20% of their time mentoring younger employees.

What the Future Holds

Employers like these represent just the beginning of a trend that will gather momentum as Unretirement and encore careers become part of the expected and desired lifecycle among an aging workforce. Benefits like these are good for employees and employers. Says Joseph Coughlin of MIT’s AgeLab: “In the near future, the ‘new kid down the hall’ may, in fact, be someone’s grandmother in the next stage of her multi-act life.”

However, the Unretirement movement could have a larger impact on the professional experience later in life with a little encouragement.

Take attorneys 65 and older. A series of changes in the legal marketplace has reduced the demand for aging boomer attorneys. The growth in legal services has been driven by corporations and organizations that use large firms less reliant on senior lawyers, and the demands for legal advice by individuals who traditionally hire smaller firms to represent them is down.

“Thus, just at a time when the demographics of the legal profession have produced a very large pool of senior lawyers, the proportion of the legal profession that is needed to remain in senior positions to supervise paid work and to be well compensated for this work is declining,” observe Kenneth G. Dau-Schmidt, Esther Lardent, Reena Glazer, and Kellen Ressmeyer in Old and Making Hay, a research paper for the Maurer School of Law at Indiana University, Bloomington.

The solution, these legal experts say, is for law firms to establish “second act” programs for their senior attorneys. Senior lawyers would concentrate much of their energies on the firm’s pro bono work. The scholars calculate that even if a mere 5% of practicing attorneys over 65 participated in a pro bono second act, the number of attorneys working primarily on public interest work would double.

The deal would be that older lawyers accepting the second act path would put in fewer hours and get paid less. “The legal profession has a golden opportunity to do well by its members, itself, and society at large,” the paper’s authors write.

How to Get a Phased Retirement

What can you do as an employee if management hasn’t gotten the Unretirement message yet?

Speak up.

Now, I usually roll my eyes when someone recommends that employees should lobby management. Good luck with that, right? Yet there are good reasons for making the case in this circumstance.

For one thing, Unretirement is a hot topic among senior managers. For another, the suggestion isn’t coming out of left field. Many leading-edge companies are adopting benefit policies that encourage employees to phase into retirement. An appeal to corporate ego, by casually dropping some of those names (Intel, Herman Miller…), just might do the trick.

Other Benefits to Aid Your Transition

There are also a few corporate benefits worth exploiting that aren’t strictly geared toward Unretirement but could help you with your transition.

For example, take advantage of any financial support your employer offers for training or education that could position you for your next chapter.

Similarly, some companies have partnerships with nonprofits where employees can volunteer during sanctioned time. If you’re thinking about shifting from the for-profit to the nonprofit sector, pursue these volunteering opportunities to do good and make potentially valuable connections that could pay off for you in the future.

And, with today’s healthier job market, if you’re considering looking for a new position elsewhere, ask the hiring manager whether the employer offers Unretirement-type benefits such as phased retirement.

Resources That Can Help

Remember: you’re far from alone. Networks of like-minded boomers seeking their Unretirement are springing up all over the country. A major resource for researching options and contacts is Encore.org, which maintains a list of encore organizations around the country and sponsors the Encore Fellowship Networks. Other helpful resources include The Transition Network, ReServe, Retired Brains and Next Avenue.

Major work and life transitions are rarely easy, even with organizational support. Still, what’s exciting about all the phased-retirement experimentations is that they will evolve. Boomers are trying out different ideas, essentially seeing which Unretirement business and lifestyle models pay off, putting pressure on managements to create more flexibility into the workplace and economy. Managements, in turn, are trying to learn which benefit packages will boost the bottom line and improve the caliber of their workforce.

Better yet, Gen X’ers, Millennials and future generations of workers will learn from boomers’ Unretirement trial and error experiences. Younger generations will see that they’ll be able to alternate the rhythm of their work lives, perhaps phasing into retirement by joining organizations with a mission that touches their hearts. We’re just getting a glimpse into the possibilities today.

This article is adapted from Chris Farrell’s new book, Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community, and the Good Life. Chris is senior economics contributor for American Public Media’s Marketplace. He writes about Unretirement twice a month, focusing on the personal finance and entrepreneurial start-up implications and the lessons people learn as they search for meaning and income. Tell him about your experiences so he can address your questions in future columns. Send your queries to him atcfarrell@mpr.org. His twitter address is@cfarrellecon.

More from NextAvenue.org:

What You Should Know About the 50+ Job Market

Dip Your Toe Into the Encore Career Waters

Phased Retirement: What You Need to Know

MONEY Second Career

This PR Exec Launched Her Second Career by Raising Millions for Wounded Veterans

PHH Co Founder John Gallina and Vicki Thomas
Purple Heart Homes co-founder John Gallina with Vicki Thomas Lynnette Thompson for Purple Heart Homes

Marketing pro Vicki Thomas saw a news segment about a non-profit start up. She knew she could help them—and ended up with a new job and happier life.

Just four years ago Vicki Thomas was a successful public relations executive in New York City with high-profile financial services clients. But she was was growing frustrated. “There was a voice calling me to really make a difference in the lives of others, not just improve a client’s bottom line,” says Thomas. “I wanted to do something more fulfilling, but I wasn’t sure what it was going to be.”

Then one day in 2009, she saw a news segment on CNN about Purple Heart Homes, a North Carolina organization founded by Iraq veterans Dale Beatty and John Gallina to provide handicap-accessible homes to wounded vets. Beatty and Gallina, who also suffered combat injuries, focus on vets who lack the money and resources to renovate their own residences. Thomas felt an immediate connection and wanted to help the fledgling organization raise more money. Improving their marketing and public relations outreach was key.

“I knew they could use professional advice but couldn’t afford the kind of expertise I could give,” says Thomas. She cold-called Gallina and Beatty, leaving a message offering her services pro-bono. “It took them two weeks to call me. But we agreed to meet and we’ve been working together since.”

Thomas left her corporate PR career behind in 2009 and began drawing on her 35 years of experience in fundraising and marketing to bring attention to the non-profit. “When I met them, I couldn’t get a news story in the local paper about them,” says Thomas. A few months later, thanks in large part to her network of contacts, Gallina and Beatty were featured in a 2011 Time magazine cover story about a new generation of veterans bringing their leadership lessons home—they even appeared on the cover. “That opened so many doors. ABC News and Nightline did stories on them, and money started pouring in,” says Thomas.

Today, as the chief communications officer for Purple Heart Homes, Thomas has helped raised millions in financial contributions and material donations. In her first year with the start up, contributions rocketed from $67,000 to $2 million. With that cash horde, the non-profit was able to qualify for grants, including a major donation from Home Depot, which further improved its financial stability. She’s particularly proud of a program she launched that matches veterans with foreclosed homes donated by banks.

After providing her services pro bono for two and a half years, Thomas now 68, began working full time for Purple Heart Homes in 2012 and drawing a salary of $48,000 a year. It’s a lot less than what she earned in her PR career, and she’s fine with that. Her husband still works, but “we’re at an age where we’re not buying stuff,” she says.

She enjoys the different pace of her work life, which is far less hectic than her days in PR. “I have so much flexibility—I can take a play day when I want to,” says Thomas, who works from her home in Connecticut. “I probably have a more perfect balance in my life than I ever had before.”

As for retirement, it’s not happening. “They’ll have to carry me out on a flip chart,” she says. “I believe you remain much more vital and connected if you can work in some capacity, especially if you are doing something you are passionate about.”

Vicki Thomas was the 2013 Winner of the Purpose Prize for Future Promise, sponsored by Symetra. The Purpose Prize is a program operated by Encore.org, a non-profit organization that recognizes social entrepreneurs over 60 who are launching second acts for the greater good.

MONEY working in retirement

Here’s the Best Way to Rescue Your Retirement and Find Happiness Too

A second career can provide income as well as meaning. This advice from retirement expert Chris Farrell can help you plan your next venture.

Chris Farrell has a hot retirement investing tip for you, but it’s not a stock or bond.

Farrell wants you to invest in yourself. In his new book, Unretirement (Bloomsbury Press), he argues that developing skills that can help you earn income well past traditional retirement age offers a better return on investment than any financial instrument—and it can help transform the economy as it continues to heal from the Great Recession.

Farrell is senior economics contributor at public radio’s Marketplace, a contributing editor at Bloomberg Businessweek and a columnist for the Minneapolis Star Tribune. In a recent interview, I asked him to describe his vision of unretirement.

Q: How do you define “unretirement”?

“Unretirement” is about the financial impact of working longer. If you can work well into your 60s, even earning just a part-time income through a bridge job or contract work, you’ll make so much more in the course of a year than you could from saving.

That changes the financial picture—and not just income. You also don’t have to tap your retirement nest egg during those years, and you might be able to add to it. And it allows you to realistically wait to claim Social Security between age 66 and 70, depending on your health and personal circumstances.

Q: What are the essential tools and strategies for people trying to figure out how to unretire? Where should they begin?

The most important thing is to begin by asking yourself what it is you want to be doing—what kind of work. Do informational interviews with people. The real asset that older workers have is their networks—the people who have known them over the years. Talk with them to find out if you need to add new skills.

Don’t romanticize any particular idea—research it. Think about how you can take your existing skills and move into a different sector of the economy with those.

Q: One of the biggest obstacles facing older workers is age bias. Are employers adapting to help older people keep working longer?

The only evidence I’ve seen of that is at companies that face very tight labor markets—typically technology businesses. It’s also true for the nursing profession. For the rest of the economy, I’ve been to conference after conference focused on older workers, where employers wring their hands about all the brain power walking out the door. They’re sincere, but when they go back to the office they really aren’t motivated to do anything about it because the labor market isn’t strong enough

Q: If that’s the case, how will unretirement be able to take hold as a trend?

The economy is getting better, and labor markets are tightening. But this also will be driven by grassroots change. Many leading-edge boomers are negotiating their own deals, starting businesses or setting themselves up for self-employment with a portfolio of part-time jobs. It’s very do-it-yourself.

And attitudes are changing—there will be enormous pressure from society as people push for this. They’re going to be saying, “We’re pretty well educated, and healthier than we were before, and the numbers don’t work for us to go down to Florida or Arizona and retire—and we actually don’t want to do that.”

Q: There’s a great debate under way over whether we are headed for a crisis in retirement security or not. What’s your view?

I don’t think there will be a retirement crisis if we continue to work longer. But we’re going to want to do it with jobs that provide meaning rather than those that make people just miserable enough that they have to continue to work.

One thing that upsets me is that we have a conflation of financial stresses facing the middle class and pretending that the middle class will be in poverty in retirement—and that’s just not true. There is a group that is really vulnerable—they’ve worked all their lives for companies that don’t provide retirement or health insurance benefits. That is the really vulnerable group.

I think two-thirds of our society will be fine, but for this other group, it’s not about investing in a 401(k), because they simply don’t have the money. For them, Social Security will be the entire retirement plan.

Q: That suggests we will need to beef up Social Security, at least for the lowest-income retirees.

Absolutely. If a majority of us are healthy and continue to work and pay into the Social Security system, we will become a wealthier society—and we will be able to afford to be more generous with Social Security.

Chris Farrell’s write columns on second careers for NextAvenue.com, which also appear on Money.com; you can find his articles here.

MONEY Second Career

These New Programs Help Workers Retire at Their Own Pace

The federal government will allow employees to phase in their retirement by working part-time. But private companies are slower to offer this benefit.

Gwendolyn Ross will turn 66 in November, but she isn’t ready to retire. A deputy comptroller for the U.S. Coast Guard in Miami Beach, Florida, she hopes to work until she’s 70—but she would like to cut back her hours.

“I have some health issues that require a lot of visits to the doctor, and I’d love to have more time to visit my family in Michigan,” she says. At the same time, she needs to keep working to prepare for retirement. “As I get closer to it, I realize I’m not as financially ready as I thought I would be when I was younger. The time went by really quickly.”

Ross is a great candidate for a new federal government program that will allow workers to opt for a phased retirement. Participants in the program, which launches this fall, will be able to work half-time while collecting half their pensions after they reach the eligible retirement age.

For the government, the program is expected to be a money saver. The Congressional Budget Office estimated recently that 1,000 employees might take advantage of phased retirement annually, and would continue work for three years. That would cut required contributions to the government’s pension system by $427 million from 2013 to 2022, and boost worker contributions by $24 million.

But phased retirement also will help the government retain talent and expertise at a time when the “brain drain” from an aging workforce is a major concern. About 600,000 people, or 31% of the federal civilian workforce, will be eligible for retirement by September 2017, according to the U.S. Government Accountability Office. Phased retirees will be required to spend at least 20% of their time mentoring younger employees.

“It can help people who want to phase out over time, but it makes sense for the whole workforce,” says Kevin E. Cahill, a research economist at Boston College’s Sloan Center on Aging and Work. “Younger workers can tap into the knowledge that the older crowd has, and make sure it doesn’t get lost lost.”

Worker interest in a flexible glide path to retirement is strong, and it’s not limited to the federal payroll. A survey this year by the Transamerica Center for Retirement Studies found that 64% of workers—of all ages—envision a phased retirement involving continued work with reduced hours. For workers closest to retirement, frequently cited reasons for continued work included financial need (34%) and a desire for income (19%). But 34% had a desire to “stay involved” or said they enjoyed their work.

Employers have been slow to respond. Just 21% of respondents to the Transamerica survey said their employers offer phased retirement—and that figure may be too optimistic.

The Society for Human Resource Management reports that 11% of employers provide some version of phased retirement, with only 4% having formal programs. Cahill’s research shows similar employer disinterest in phased retirement programs.

“Sometimes there are institutional or administrative restrictions,” he says. “And some employers may have good reasons not to offer flexible hours.”

Much more common, he found, are workers who find what they need by changing jobs. “These are bridge jobs that carry people through from their careers to withdrawal later on from the labor force,” he says.

Some experts think phased retirement options will become more popular as the economy improves and labor markets tighten, particularly as demand for specialized skills rises. And the federal government’s move could be a catalyst for change in the private sector.

Each federal agency will write its own eligibility rules, and phased retirement won’t be a guaranteed right for all workers. But basic eligibility will depend on which of the two major federal retirement programs covers an employee.

The government has a legacy Civil Service Retirement System (CSRS), a traditional defined-benefit system, and the newer Federal Employees Retirement System (FERS), a defined-contribution program with a small traditional pension component.

CSRS employees will be eligible for phased retirement at age 55 with 30 years of service, or at 60 with 20 years of service. FERS employees must be 60 with 20 years of service, or have 30 years of service and have reached their minimum retirement-eligible age.

Interest in the program is strong, according to Jessica Klement, legislative director of the National Active and Retired Federal Employees Association.

“The number of phone calls we get from members tells me there are a lot of people waiting for this,” she says. “Many of them are ready to take a step back, but they don’t really want to quit yet.”

MONEY Second Career

How This 66-Year-Old Launched a Second Career Raising Millions to Fight Cancer

Ysabel Duron
A former TV journalist and cancer survivor, Ysabel Duron founded and leads Latinas Contra Cancer to educate and support Hispanics fighting the disease. Photo by Eydie Mendoza

Ysabel Duron saw that Latinos needed more cancer support services. So she left the TV business and started a non-profit to help them.

When Ysabel Duron was diagnosed with Hodgkin’s lymphoma at age 51 in 1999, she was working as a news anchor for a local television station in San Francisco. It was a natural move for her to chronicle her treatment and raise awareness about cancer. Her documentary about her experience won awards. But after attending support groups for cancer patients, she realized a key audience wasn’t getting the message: Latinos. Relatively few were getting treatment or support services. So she set out to help low-income Spanish-speaking cancer victims in need of help.

She first volunteered with the Cancer Prevention Institute of California, educating Latina women about breast cancer. But she wanted to do more. In September 2003 she founded Latinas Contra Cancer (Latinas Against Cancer), an organization aimed at educating and providing services to low-income Spanish speakers. The issue is critical in the Latino community, Duron says. Cancer is now the leading cause of death among Hispanic Americans, overtaking heart disease, which is still the top killer of whites and African Americans in the U.S., according to the American Cancer Society.

One key reason for the high cancer rate is cultural. Among Hispanics, cancer is still a taboo topic, so they are less likely to get advance cancer screening. Economic barriers are also a challenges—one-third have no health care coverage. “I had access to good health insurance and knew how to research treatments,” says Duron, who has been healthy since she finished treatments in 2000. “So many Hispanics don’t have the advantages I did.” To help meet these needs, LCC runs cancer education workshops, as well as provides Spanish-language support groups, home visits, phone counseling and help navigating treatment and insurance

After launching LCC, Duron continued to work weekdays and evenings, while still maintaining her full-time weekend news anchor job. One of her first moves was to organize a fundraiser—using her news anchor connections, she persuaded local politicians and VIPs to attend by giving them awards. She also sought out regional grants from organizations focused on cancer issues, like the Komen Foundation.

“As we showed success, we were able to attract others to support us,” says Duron. She recruited local investors and persuaded a businessman to donate a small office space for $250 a month in a good neighborhood in San Francisco. “I was determined to make sure we had a good image,” say Duron. “You always have to look like you’re a good investment. We don’t operate like a nonprofit with its hand out. We operate like a business.”

Last year she retired from the TV business at age 66 and now devotes all her time to LCC as its CEO and executive director. “I spent 13 years doing two jobs. It’s a pleasure to focus all on my energy on this,” says Duron. Her organization has a $450,000 annual operating budget and nine part-time workers, up from $150,000 and two part-timers its first year and has so far raised more than $2 million. “It’s still a small organization and we work hard for every dime,” says Duron.

Even so, she is seeking to extend LCC’s services nationally, so it doesn’t just rely on local funding. To bring more recognition to the group, she sits on several national non-profit boards. In 2008 she started the first National Latino Cancer Summit, which brings together health care providers, researchers and community-based agencies. Duron also lobbies on national issues, such as extending Affordable Care Act insurance to more immigrants and including more minority women in cancer research.

Since embarking on her second career, Duron no longer makes a six-figure salary—as executive director of LCC, she earns about $50,000 a year and often uses her own money to cover expenses such as travel for work. But thanks to her pension, savings and Social Security, she still enjoys a comfortable lifestyle, she says—despite living in the expensive Bay Area.

As for her former life as a broadcaster, she doesn’t miss it. “I had a successful career. I was ready for my next act,” says Duron. “You need the ganas, the determination and will power to make something like this a success—but this is what I was meant to do.”

Ysabel Duron is a Purpose Prize winner. The Purpose Prize is a program operated by Encore.org, a non-profit organization that recognizes social entrepreneurs over 60 who are launching second acts for the greater good.

MONEY Second Career

How to Shift From Full-time Work to a Part-Time Second Career

Choir Teacher
Nicole Hill—Getty Images

Here are proven strategies for finding both money and joy in your transition to retirement.

If you’re a boomer you may remember small “hippie” shops selling fringe jackets. Maybe you still have one of them stored in a closet. If so, your Age of Aquarius memento might have been created by Lincoln Wolfe, now 60.

In recent years, Wolfe has made the transition from full-time (high stress) manager in the craft leather business to part-time (low stress) consultant to the industry. His job duties now range from training young workers to planning factory layouts.

“I didn’t want to work full-time for anyone,” he says. “I enjoy what I am doing at a more relaxed pace. This is retirement.”

Downshifting In the Field You Love
Transitioning from a 40-hour-plus workweek to a part-time schedule in retirement that’s less of a grind, but still in the field you’ve grown to love, may be your idea of retirement, too.

Here’s how Wolfe and professional singer Fay Putnam told me they did it and what you can learn from their experiences.

Wolfe decided he was done with school at age 16 and headed for Florida where he started a business with a 24-year-old, making sand-cast castles on the beach and selling them to various outlets. A customer in New Jersey hired him about a year later, launching his career in the leather craft trade.

Wolfe worked his way up in the industry, sometimes running his own venture and other times for an employer. In the early 1990s, Coach (the high-quality leather goods designer and manufacturer) hired him to oversee the technical development of new products — moving leather goods from the designer shop into mass production.

Coach grew dramatically and the job became increasingly intense, especially when production moved offshore to India and China. But since Coach went public in 2000 and Wolfe’s shares had appreciated some 13 times by 2005, he then had enough money to retire on.

Growing a Consulting Business
When he began consulting from his home in Lambertville, N.J., Wolfe’s initial contracts were, as you might expect, from Coach. His business then expanded through referrals. These days, Wolfe works about a third of the time, usually on the road.

His “unretirement” timing was fortuitous with the revival of the American leather goods industry—mostly designer products catering to urban hipsters. In 2012, Wolfe began consulting with Shinola, the Detroit-based Made-In-America producer of handcrafted watches, leather goods and bikes.

When we talked in late July, Wolfe was in Dearborn, Mich. writing an industrial sewing curriculum for the Makers Coalition, a trade group formed to apprentice a younger workforce into artisan leather manufacturing. The program will be housed at Henry Ford Community College’s Michigan Technical Education Center.

Singing a New Song
Leather craft is an art. So is singing. Fay Putnam spent her career as a professional singer, putting long hours into her craft, mostly with choirs such as the Gregg Smith Singers and the San Francisco Symphony choir. Putnam also had a side business as a voice coach.

She moved around fairly frequently because her husband, Frank, was a U.S. Navy aviator. Now 68, Putnam has started a part-time business in Portland, Ore. as a voice and speech coach.

“I love doing it,” she says. I wouldn’t keep doing this if I didn’t love it.” Although, she concedes, she’d welcome a few more clients.

Putnam and her husband moved to a condo in downtown Portland from the San Francisco Bay Area two years ago. Their son and daughter-in-law live there; so does her husband’s brother. And their money now goes farther. Most of all, Putnam says, they were tired of the San Francisco metro area’s horrendous traffic jams.

Frank is now retired, but Fay wanted to stay engaged in her art and teach the voice and breath control techniques she learned over the years. Most of her business is helping entrepreneurs and employees polish their public-speaking presentations. She coaches some singers, too.

Takeaways From Wolfe and Putnam
Wolfe’s and Putnam’s stories highlight a number of critical aspects that others in their 50s and 60s should take into account as they mull their next chapters.

Both built their new ventures on their existing knowledge and skills, rather than shifting to unfamiliar fields. For most boomers, I don’t believe there is any reason to succumb to the lure of reinvention—the urge to embrace a radical makeover—especially if the goal is finding part-time work that offers a financial and psychic reward.

And yet, much of the late-in-life transition narrative we often hear extols the new, the different, the dramatic change.

You know the story. Someone has labored long in a cubicle, or spent hours as a road warrior, for corporate America. Now, in the last third of life, she finds her passion, somehow manages to open a winery, basks in its growing sales and gets invited to speak about reinventing yourself at global conferences.

Okay, I’m exaggerating slightly. But I wholeheartedly agree with the cautionary wisdom of Marc Freedman, founder of Encore.org, in a recent Harvard Business Review column.

He wrote: “After years studying social innovators in the second half of life — individuals who have done their greatest work after 50 — I’m convinced the most powerful pattern that emerges from their stories can be described as reintegration, not reinvention. These successful late-blooming entrepreneurs weave together accumulated knowledge with creativity, while balancing continuity with change, in crafting a new idea that’s almost always deeply rooted in earlier chapters and activities.”

What I applaud about Wolfe and Putnam is that they smartly exploited what they already knew. It’s an insight echoed in a 2010 paper by professor Barry Bluestone of Northeastern University and Mark Melnick of the Boston Redevelopment Authority. When investigating jobs that might be available for aging workers, the authors felt boomers should exploit their skills — albeit, sometimes in a different setting or even industry.

“In many cases, older workers could carry their existing skills and credentials into a new setting,” they wrote. “For example, a registered nurse might move from a major hospital to a community clinic; a computer systems analyst at a private software company might take a job in local government; a civil engineer at a private construction firm might work on a state government highway project.”

Training for the Transition
Of course, you still may have to pick up additional training or education to ease the transition.

Putnam spent her career on the creative side, so she realized she needed to know more about the practical aspects of running a small business. “Most of the time, in the training that artists get, business savvy isn’t included,” she laughs.

To wise up, Putnam took a month-long business basics class called “Better, Smarter, Richer” at Portland Community College. It was designed specifically for solopreneurs and creative entrepreneurs like herself.

The course taught Putnam how to build her website and market her services to local business groups. Best of all, she says, her classmates continue to get together, share information and cheerlead for one another.

Flexibility Is a Must
Like Wolfe and Putnam, many boomers want to continue earning an income during retirement, but put in fewer hours. Their desire for the “big job” and to climb the ladder of the “big career” lies in their past. Phyllis Moen, sociologist at the University of Minnesota, says what many boomers desire are: “not so big jobs.”

Wolfe and Putnam found it much easier to create their flexible work schedules by tapping into their backgrounds rather than attempting ambitious life overhauls. “Older workers value flexibility,” says Richard Johnson of the Urban Institute. “They don’t want to work 9 to 5, five days a week.”

Wolfe’s story reinforces the benefits of flexibility in a different way that will strike a chord with many in their 50s and 60s. He has dialed back on his consulting services recently after being diagnosed with cancer. His prostate cancer has been successfully treated, but Wolfe must now spend more time paying attention to his health, watching his diet, exercising, meditating and so on.

He still enjoys consulting, but his priorities have changed. Cancer has that effect. “I think that I would try to be more engaged than I am now if it wasn’t for the stress of travel,” he says.

Thing is, assuming their health holds up, both Wolfe and Putnam have achieved something all of us desire: Control over their destiny. They can curtail working if they want to. They can stay engaged, if the work remains interesting. It’s their choice.

Not bad for a next chapter.

Chris Farrell is senior economics contributor for American Public Media’s Marketplace and author of the forthcoming Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community, and The Good Life. He writes about Unretirement twice a month, focusing on the personal finance and entrepreneurial start-up implications and the lessons people learn as they search for meaning and income. Tell him about your experiences so he can address your questions in future columns. Send your queries to him at cfarrell@mpr.org. His twitter address is @cfarrellecon.

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MONEY Second Career

How a 57-Year-Old On Her Second Career Launched a $10 Million Business

Im Ja Choi
Im Ja Choi (center, in white suit), founder of Penn Asian Senior Services, celebrates with clients at the opening of her agency's first adult day care facility, the Jubilee Center in Philadelphia. Courtesy Penn Asian Senior Services

Im Ja Choi saw a need for caregivers who speak foreign languages. So she started a non-profit that provides them.

After her mother was diagnosed with stomach cancer in 2002, Im Ja Choi knew it was crucial to get her a home health aide once she was out of the hospital. But Choi was quickly frustrated by the difficulty of finding a caregiver in the Philadelphia area who spoke Korean, her mother’s native language. Choi quit her job as a bank vice president to take care of her mom until she found one—a process that took seven months.

That experience became the catalyst for Penn Asian Senior Services, a non-profit home health aide agency that Choi, now 65, launched in 2005 to serve the local immigrant community in Philadelphia. Today PASSi serves 455 clients and provides home care services in 11 languages. And with 400 workers workers on its payroll, it’s one of the largest Asian immigrant employers in the area. Annual revenue is about $10 million, and earlier this year the agency opened its first senior daycare center.

It’s an impressive outcome for someone who had never run a business. Choi, who emigrated to the U.S. from Korea after finishing college in 1971, had a 20-year career as a top real estate agent in Philadelphia. Then, after getting a master’s degree, she worked her way up to vice president at a local bank. But starting a business from scratch at age 57 was a wholly new challenge for Choi.

To cover initial operating costs, she took out took out a home equity line of credit for $55,000. “It took some convincing for my husband to agree,” says Choi. A long-time volunteer on Asian women’s issues, she used her local network to find public funding. She got a $50,000 grant from the county and won $900,000 in grants during the first three years of operation. “I had to learn how to write a grant application well, but it was my contacts in the community that really helped. I knew who the decision makers were,” says Choi.

She had enough savings to get by without salary for the first year and was able to repay her home loan within a few months of starting the business. She started drawing a small salary at the end of the first year, after budgeting for that income in her grant applications. “Every step of the way I was fighting for funding and looking for clients,” Choi says. When PASSi reached 175 clients, its revenue covered operating costs; in 2009 the agency began turning a profit.

Today Choi earns about $114,000 annually. It’s less than she pulled down as a banker but she feels much more satisfied by her work. “We provide a service that’s really needed,” she says. She saw proof of that with her mom. Despite a grim initial diagnosis, Choi’s mother lived another eight years, passing away in 2010 at age 93. Choi believes the culturally-based care she got was key to her long survival.

“I consider this job a privilege,” says Choi. “When you have a dream, you somehow make it come true. Now I feel like I am doing the things that I want to do.”

Im Ja Choi is a Purpose Prize Fellow. The Purpose Prize is a program operated by Encore.org, a non-profit organization that recognizes social entrepreneurs over 60 who are launching second acts for the greater good.

MONEY working in retirement

How to Find Happiness in Your Second Career—and Earn Money Too

These days, the retirement-planning conversation goes something like this: How can I earn an income after my initial career and give back at the same time?

This article was originally published at NextAvenue.org.

Cindy Lennartson is a 48-year-old library specialist at the University of Texas Libraries, in Austin. She has worked for a university library system for 25 years and is excited about retiring from there at 52 (when she can collect her pension) to start her next career. But she’s not quite sure how to do it.

After Lennartson read my inaugural column on rethinking retirement, “Why I’m Not Buying the Retirement Gloom,” she emailed me for insights on how she might make, and embrace, a life transition. I’ll offer them, as well as advice for others contemplating their move into “unretirement,” shortly.

The Lure of Trying Something New

To find out more about Lennartson’s situation and the future she envisions, I spoke with her. She told me that she’s a recently divorced mother of three who has loved her job and, until a few years ago, believed she’d retire at 62. But the lure of trying something new has convinced Lennartson to start reimagining her next chapter.

(MORE: Busting the Myths About Work in Retirement)

With her new plan of “retiring” at 52 when her children are out of the house, Lennartson said, she can use the next four years to find an encore career that will be meaningful and will come with a paycheck. “I’m rethinking the whole retirement thing — what else do I want to do,” she says. “I’m in the exploratory stage.”

Lennartson is far from alone. For more than three decades, the national conversation among people contemplating retirement was dominated by the haunting question: What is my number? Of course, the sum of savings we’ll need to live comfortably when we’re no longer working is disconcertingly uncertain. There’s no way of knowing what the market will return, let alone how much money will be enough to fund a lifestyle and medical bills.

The New Retirement Question

That’s why, these days, the retirement-planning conversation is increasingly focused on a different question: How can I earn an income after my initial career and give back at the same time?

Recent polls have found that most boomers expect to earn a paycheck during retirement. For example, 72% of pre-retirees age 50 and over just surveyed by Merrill Lynch and the Age Wave consulting firm said they want to work during the traditional retirement years. (You can read more about the survey in the Merrill Lynch report: Work in Retirement: Myths and Motivations, Career Reinventions and the New Retirement Workscape.)

What I found particularly striking in that survey was that many of the respondents said they see retirement “as a chance to try something new and even pursue careers dreams they were unable to explore during their pre-retirement years,” according to the report.

(MORE: Bright Spots and Challenges of Growing Older)

The Payback for Working in Retirement

The personal financial return from earning even a slim paycheck well into the traditional retirement years is big.

Your savings can continue compounding and you’ll live off your accumulated assets for a shorter period of time. A job can also allow you to delay filing for Social Security. Benefits are more than 75 percent higher if you start claiming at age 70 than at 63.

The difficult issue, as Lennartson has discovered, is figuring out what to do next — locating a paying gig that is also engaging.

Lennartson is smart to have a four-year exploration horizon and I encourage you to do the same. “You should be looking for the kind of jobs you could do that are challenging and interesting and offer an acceptable income,” says Arthur Koff, the septuagenarian founder of Retired Brains, an online job and advice portal. “The time to do it is while you’re working.”

(MORE: Change Careers With the ‘Sugar Grain’ Principle)

Why Planning Ahead Can Help

Making inroads before you retire can also help make you more valuable in retirement, as Jake Warner, the founder of Nolo.com, the self-help legal publisher explained to me.

“Let’s say someone thinks of themself as an environmentalist and dreams about working in environmental causes when they retire. But because of work, saving money, raising kids — all the pressures of daily life — they don’t get engaged,” said Warner. “Now they’re 70 and they have time. They head toward an environmental group they admire and say, ‘Here I am. How can I help you?’ The answer is going to be probably not much. Now, take that same person who gets involved with several local environmental groups in their 40s or 50s. At age 70, they’re valued and they’re needed. They earned it.”

The Librarian’s Encore Career

What might Lennartson do for her encore career? Well, she currently volunteers at a nonprofit, recording incarcerated fathers reading to their children and that’s an activity she finds deeply fulfilling. Perhaps there’s a paying job for her with the nonprofit or a similar endeavor.

Alternatively, since her undergraduate degree was in Spanish, she could try to land a job that would let her use her language skills.

Whatever she decides, a part-time gig would probably be best, since Lennartson wants the freedom to travel with her daughter, an activity they enjoy doing together.

Part of the equation revolves around her finances.

Running the Numbers

Lennartson had initially thought she would keep her house in retirement so her children would have a bedroom to come back to. Now, with her new next chapter mindset, she wonders if maybe just a couch is enough. A move into a smaller place would lower her expenses, giving her greater financial freedom.

Henry “Bud” Hebeler, founder of the retirement planning website Analyzenow.com, recommends Lennartson run the numbers to see how much downsizing will boost her cash flow. (That’s a useful site for anyone over 50 noodling a next act.) When she gets closer to making a shift, Lennartson could run her financial blueprint by a professional planner, he says.

As Lennartson is finding, transitions can be tricky and the process takes time. But they’re also liberating. “I feel like I am in college, so much is open to me,” says Lennartson. “It’s like I’m 21 or 22 once again,” she says. Now, that’s exciting.

Chris Farrell is economics editor for APM’s Marketplace Money, a syndicated personal finance program, and author of the forthcoming Unretirement: How Baby Boomers Are Changing the Way We Think About Work, Community, and The Good Life. He will be writing on Unretirement twice a month, focusing on the personal finance and entrepreneurial start-up implications and the lessons people learn as they search for meaning and income. Tell Chris about your experiences so he can address your questions in future columns. Send your queries to him a tcfarrell@mpr.org. His twitter address is @cfarrellecon.

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