An Income Gap for Baby Boomers During Career Transitions
New research from Civic Ventures, a San Francisco think tank aimed at baby boomers who want to combine work with social purpose illuminates some of the challenges to doing so.
“There’s a big payoff from encore careers, for individulas and for our society,” said Marc Freedman, founder and CEO of Civic Ventures and author of The Big Shift: Navingating the New Stage Beyond Midlife. “But making the switch is hard. Employers, policymakers and all of us in our own lives need to think creatively about how to make the investments in encore transitions that lead to these new, more fulfilling careers.”
Among the findings in the study.
The nine million people (ages 44-70) who are already in encore careers, on average, started to think about their encores at age 50 and took about 18 months to make the transition. To prepare they participated in local volunteer programs, enrolled in training courses and additional education and also volunteered in local houses of worship.
Still finances remain a concern.
About 40% say they do not feel secure enough financially to make a career switch in this economy, with the uncertainty extending to what type of job or career to pursue and where to find the time to explore new interests.
Of those that have switched, more than 65% say that have gaps in their personal income during the transition. Almost 25% say they earned no money or earned significantly less than in their previous job. Nearly 80% say the gap lasted six months or more, with 30% saying the gap extended to more than two years. Those folks relied on savings to make ends meet.
The organization recommends individual financial planning, access to new savings options, educational assistance, the possiblity of paid or stipended national or community service opportunities as a way of bridging the gap among other ideas.
Tags: career choice, career transitions, employee attitudes, Retirement, second careers
