As people reach the traditional retirement age many decide that they don’t want to spend the rest of their lives as retirees. Instead they opt to begin a second career.
One of the advantages of changing careers later in life is that many of these people are financially secure, making the transition to a new career much less hazardous. According to an article by Donna Mitchell in Financial Planning magazine, career changes are common for older Americans. According to statistics from the AARP, they found that more than 80% of the 51 – 55 year-olds working full-time in 1992 had left their employers by 1996. Half of the workers had taken positions with new employers by 2006. Almost 66% of those older workers who changed jobs had switched occupations.
These changes are done for various reasons: personal fulfillment, a rebound after a layoff or to start their own business. If you plan to make the transition make sure that you know what you are doing.
- Make a financial plan with the assistance of an RIA.
- Make sure you have the financial resources to begin the new career.
- Make sure that if the new career does not work out you won’t destroy your retirement plans.
- Make sure your new career is something you really want to pursue.
- Many older people find that they have the expertise to be hired as a consultant, a low-risk, low investment way of beginning a second career. In view of the financial commitment that companies are forced to make when they hire a full-time employee, consulting is becoming more attractive for many.