Older, Wiser and Working

By Gene Zaino

The way we work is changing– but so is the way we are retiring. Today, older professionals are showing the world that there is more than golf and grandchildren in the next phase of life. Older professionals are not only working; they’re surpassing their younger counterparts. A new report reveals that from 2007 to 2013, the number of jobs held by baby boomers (age 55-64) grew by 1.9 million, or 9 percent. By contrast, during the same time period job growth for millennials (age 22-34), was 0.3 percent. Further, baby boomers are not only gaining jobs, but now hold a larger percentage of jobs in science, technology, engineering and math (STEM) and other occupations than prior to the 2008 recession.

While some choose to continue in traditional employment, others are demonstrating that the golden age is also a golden time to launch an independent career. According to MBO Partners annual State of Independence in America Report, of the nearly 17 million independent workers in America, there are more Boomer independents than any other generation. Further, mature independents (67+ years) comprise 8% of independent workers in the United States.

With experience and a strong network, older professionals not only have an opportunity to launch a new phase of their career, but also to enjoy a competitive advantage over their younger cohorts.

What is behind the trend?

There are more than 7 million people 55+ years old working as independent professionals. They are working as freelancers, independent contractors, consultants and solo small business owners. While some continue working to support their financial needs, others want to stay engaged and contribute value, but they want do it on their own terms.

Technological advances and a continuing shift to a project-based economy have greatly expanded the opportunities for professionals to work independently. Today, work is more easily packaged into finite deliverables or projects that can be delivered by independent professionals. In the fast-growing project economy, you can leverage your talents with multiple clients, rather than relying on a single company for your income.

Finally, the cost of starting a business is much lower today than in years past, averaging from $4,000 to $5000. The lower start-up cost makes the prospect of striking out on your own far easier and less riskier. You do not have to go into debt or risk your nest egg.

 

Why You’re In Demand

One of the criteria for hanging out your shingle is having a defined expertise and having the ability to articulate it clearly. At this stage of your career, you know your core competencies and have a portfolio of successes to support them.

Your experience is a product that may be valuable to buyers (companies) looking to solve specific problems. With knowledge as an in-demand commodity, older Americans have a decided advantage, bringing not only experience but invaluable institutional knowledge. This is especially true in fields such as energy, where it can take years of exposure and knowledge to gain competency, as well as the federal government, where retirement rules will force out a large number of professionals with historical knowledge.

By mid-life, you have established a trusted network.  Statistics reveal that a trusted network is one of the greatest sources of work for independent consultants. When hiring or referring you, they do not have to guess at your skills, knowledge or work ethic. Those who have worked with you know you, and that credibility is critical to starting any kind of professional service business.

Starting Your Own Solo Career

If you hear the clarion call to independence, use the tips below to get started.

• Use your social capital and intellectual capital rather than hard-earned capital. One of the first steps to launching your independent career is to tap into your extensive network of current and former colleagues and clients,. Let your network know your plans, explain the value that you can offer – your knowledge of the industry, previous work experiences – and don’t be shy about asking for referrals or ideas on how you can improve your value proposition. You will be surprised by how many people you know who may need the services you offer.
• Learn how much to charge. In the corporate world, you are accustomed to valuing your services based on an annual salary. Employers pay you a fixed amount to perform a range of duties. As an independent consultant, companies hire your knowledge, skills, expertise and resources to solve a problem. That value is not solely based on the number of hours it will take to develop and implement your solution. Your bill rate should account for value, time and the expenses inherent in running your own business, such as taxes and administrative expenses.  Use the free bill rate calculator at MBO Partners to help you build your rates.
• Put away money. Even though you are working during your retirement, continue to build your nest egg. Until the age of 62 ½, you can put a great deal of money away in a tax deferred savings plan, so take advantage of these years.

An independent career offers freedom and flexibility, characteristics that become more valued as we grow older. Many professionals 55+ find this style of work more fulfilling and engaging than their old corporate jobs. Working in retirement is not only possible, but it just may be the wisest career decision you’ve ever made.

About the Author:

Gene Zaino is the President and Chief Executive Officer of MBO Partners, a company that has reinvented the way independent consultants and organizations work together. Gene is an accomplished and nationally recognized expert in the contract workforce market and frequently sought after speaker.

 

Category: Articles