Encore Career Choices: Purpose, Passion and a Paycheck In a Tough Economy

Introduction

Tens of millions of Americans in their 40s, 50s and 60s are making decisions about their next stage of work. The choices these baby boomers make – and the choices available to them – will shape not only their own lives,

but the lives of their communities and the nation for decades to come.

One choice for the next stage is an encore career, an emerging category of late-career work that recognizes that what many people want from work changes after midlife. In their new stage of life, many want work that has deeper personal meaning and that connects them to something larger than themselves.

A new MetLife Foundation/Civic Ventures study suggests that as many as 9 million people between ages 44 and 70 are already in encore careers that combine, in varying proportions, purpose, passion and a paycheck –

and another 31 million are interested in joining them. The survey shows that the fragility of current employment and the scarcity of new job openings, along with disappearing pensions and volatile stock and real estate values, have tempered the expectations of many people who are otherwise disposed to make such a change.

Half of Americans between 44 and 70 (51 percent) say they are very concerned that the state of the economy makes this a difficult time to make a change to an encore career.
 

Yet, the survey also points to resilience, persistence and unwillingness to give up on efforts to create a better world for future generations.
 

In spite of the tough economy, one in four (27 percent) of those interested in encore careers say they are very likely to make the switch in the next five years.
 

And, contrary to stereotypes about boomers, concern about future generations is high. Nearly three in four respondents (73 percent) expect that children in the U.S. will grow up to be worse off than people are now. Nearly as many (70 percent) say it is very important to them personally to leave the world a better place.

The talent and experience represented by those 44 to 70 are significant to the economy overall, but especially to the public and nonprofit sectors. Those in encore careers now perform an estimated 16.7 billion hours of labor each year in education, health care, government and nonprofit organizations. Just for comparison, that’s more than double the 8.1 billion hours provided each year by volunteers of all ages. 

Those who want encore careers seek opportunities to use existing skills in new ways, to continue learning and being challenged and to have a positive impact on communities. Those who are interested in encore careers also want to work with and help others, and gain a sense of meaning and accomplishment. 

One choice for the next stage is an encore career, an emerging category of late-career work that

recognizes that what many people want from work changes after midlife.
 

Encore Career Choices: Purpose, Passion and a Paycheck in a Tough Economy 2 Is that goal a practical one? Among those interested in encore careers, nearly three in five (58 percent) of those with an opinion see an encore career as a fully paid job that can enhance their income security.

If the tens of millions of Americans interested in encore careers are indeed able to make the transition, they will comprise a new and powerful workforce for social good at a time when social needs are growing and challenges are multiplying. Their success would also establish the encore stage of life as a time for baby boomers and the generations that follow to take on new, purposeful work that improves the quality of life for all Americans.

Methodology

Encore Career Choices: Purpose, Passion and a Paycheck in a Tough Economy is the second in a series of three Civic Ventures reports funded by MetLife Foundation and based on research conducted by Penn Schoen Berland from June to October 2011.
 

The research for this report consists of two separate quantitative surveys:
 

• A nationally representative telephone survey of 930 Americans ages

44 to 70 from June 16 to June 30, 2011, which included 85 people currently in encore careers, 285 people interested in encore careers and 534 people not interested in encore careers. The sample was based on

a list provided by the well-respected national list management firm Epsilon Data Management and

included both landline and cellular numbers. The margin of error for the total sample is ±3.21 percent

at the 95 percent confidence level and larger for subgroups.

• An online survey of 1,408 Americans ages 44 to 70

from September 6 to September 23, 2011, which included 253 people currently in encore careers,

836 people interested in encore careers and 296 people with moderate interest in encore careers.

The sample was provided by Authentic Response, a widely used online survey vendor with a database

of more than 4 million respondents. The additional online interviews delved into the topic of encore careers in

greater detail. The margin of error for the total sample is ±2.61 percent at the 95 percent confidence level and larger for subgroups.
 

The first report, Encore Entrepreneurs: Creating Jobs, Meeting Needs, basedon an online survey of 400 potential entrepreneurs ages 44 to 70, was released on November 8, 2011, and is available at www.encore.org/research.

The third report, which will focus on transitions to encore careers, willbe published in early 2012.

If the tens of millions of Americansinterested in encore careers areindeed able to make the transition,

they will comprise a new and powerful workforce for social good at a time when social needs are growing

and challenges are multiplying.

Encore Career Choices: Purpose, Passion and a Paycheck in a Tough Economy 3

Abundant Talent

Those currently in encore careers and those interested in encore careers represent a huge and motivated group of experienced adults seeking to work in new ways and to new ends, while still making ends meet. 

As many as 9 million people, or 9 percent of all Americans ages 44 to 70, 

are currently in encore careers, having made major career changes after age 40, or returned from retirement to work full time or part time in a range of social-purpose fields. The number of people in encore careers

has increased slightly through the economic downturn. A 2008 study,the MetLife Foundation/Civic Ventures Encore Career Survey, was the first to count those in encore careers and estimated the number of people in

encore careers at 8.4 million.1

These findings reinforce a recent analysis of Health and Retirement

Study data by the TIAA-CREF Institute, which determined that onethird of all people between 59 and 69 are working at something different than their earlier career.
2 All told, Americans in encore careers may provide as many as 16.7 billion hours of labor each year.
3 Just for comparison, that’s more than double the 8.1 billion hours provided each year by volunteers of all

ages.
4 People currently in encore careers are working in education (30 percent), health care (25 percent),

government (25 percent) and nonprofit organizations (11 percent). On average, they expect to continue

in these roles for 11 more years.
 

They bring to their encores lifetimes of experience. 

By their own accounts, many are expert in team leadership and organizational management (31 percent);

office administration (29 percent); human services, such as counseling, coaching and teaching

(22 percent); and program management and sales (both at 16 percent). As many as four in five (80 percent)

have experience managing others.
 

There’s an even larger potential pool of talent in the pipeline. As many as 31 million others (31 percent)

ages 44 to 70 are interested in launching their own encore careers. As many as 11 million of them

(11 percent of Americans in that age group) say they are very likely to make the transition to their social purpose

encore careers in the next five years.
 

ABUNDANT TALENT

oF THE APPROXIMATELY 100 MILLION aMERICANS

AGES 44 TO 70, ROUGHLY:

IN MILLIONS 0 10 20 30 40

9 MILLION ARE

CURRENTLY IN

ENCORE CAREERS

31 MILLION ARE

INTERESTED IN

ENCORE CAREERS

WORKING FOR THE GREATER GOOD

PEOPLE CURRENTLY IN ENCORE CAREERS WORK

IN THE FOLLOWING FIELDS:

eDUCATION (30$)

HEALTH CARE (25$)

GOVERNMENT (25$)

nONPROFITS (11$)

FOR-PROFITS (5$)

oTHER (3$)

Encore Career Choices: Purpose, Passion and a Paycheck in a Tough Economy 4

Among those interested in encore careers, nearly six in 10 (57 percent)

see themselves working at least part time after they retire from their earlier careers. On average, they envision working for about nine years after leaving their midlife jobs.
 

Those interested in encore careers are most attracted to working in the fields of education (30 percent are very or extremely interested), nonprofits (29 percent) and health care and faith-based organizations (both at 24 percent).
 

Together, those currently in encore careers (9 percent) and those interested in encore careers (31 percent)

represent two in five Americans (40 percent) ages 44 to 70.