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The stereotypes abound: that Americans 55 and older are over the hill, on the shelf, and their headlights are getting dim. When the Social Security Act of 1935 established the retirement age of 65, average longevity was 62. In 2012, 77 years later, despite the reality that longevity for men is 78 and 80 for women, a pervasive negative sentiment remains about older workers and aging in America.

Our national focus is on hiding the wrinkles and shedding the years, thus perpetuating ageism thinking and encouraging people to conceal their age. We shouldn’t focus on the problems of an aging population, without understanding and taking advantage of the benefits and opportunities.

Myths and stereotypes about aging are prevalent, despite a massive amount of contrary data. Here are some of the disconnects that create dilemmas:

1. America’s focus is on marketing to younger people, while older people have the money. According to the Harvard Business Review, people 55 and older own or control more than 70% of the total accumulated private wealth in America and account for 50% of total discretionary spending.

2. Companies spend much more on training and development of younger workers than on older workers, despite the reality that investment in the older workers would have a better pay-off because younger workers 20-34 have more than three times the turnover of workers 55-64.[1]

3. Employee benefit programs, particularly defined pension plans, encourage people to retire earlier, even though many would like to continue working longer and are able to add substantial value. In fact, laws and public policies often discourage or provide a disincentive for companies to continue using workers 55+ and for people 55+ to continue working, instead of encouraging both groups to do so.

4. National economic growth and our standard of living may be reduced if workers 55+ are not provided with opportunities to continue working (i.e., they will be drawing from instead of contributing to the economy), yet there is no strong recognition of the need to do so.

5. Research shows that millions of Americans want to continue working after retirement (80% of the Baby Boomers indicate that they intend to do so[2]), the largest percentage on a part-time basis, but most companies aren’t providing phased retirement and other flexible workplace options that will help them retain and recruit workers 55+ who can continue adding value.

6. Medicare and Social Security are financially unsustainable, yet we only apply band-aids.  The retirement age must be changed to reflect that people are living longer, in better health and able to continue working for substantially more time. Helping workers over 55 to remain productively engaged would ease Social Security and Medicare/Medicaid problems and would contribute to the country’s economic growth.

The reality is that Americans are living substantially longer lives and in better health, but our thinking about aging and retirement remains largely unchanged. We are doing our country a disservice when we view people in terms of chronological age rather than considering their overall capabilities and their ability to add value. It’s time to change this paradigm.

In support of this paradigm shift, the Center for Productive Longevity (CPL), an organization serving as the bridge between people 55 and older and opportunities that enable them to continue in productive activities, has initiated a national competition, the Later-Life Story Contest, for people 50 and older. The competition has two categories: Entrepreneur Success Stories and Inspirational Later-Life Stories. A panel of three independent judges will select one winner from each category who will receive $1,000 and a specially designed trophy. CPL will post the best stories on its website (ctrpl.org) under “Success Stories.” The contest deadline is August 31, and winners will be announced on October 1, 2012.

To submit a story, visit http://www.ctrpl.org/laterlifestorycontest and complete a submission form. Entrants must be 55 and older, have a compelling story to share, and be willing to have it posted on the CPL website for viewing and for possible publication. Stories may also be sent to James Hooks at jhooks@ctrpl.org. 

All readers may be familiar with ESP–extrasensory perception.  I propose that we focus on EESP–experience, expertise, seasoned judgment and proven performance. This is what Baby Boomers can provide versus their younger counterparts. I like the old saying: “Good judgment comes from experience, and experience comes from bad judgment.”

Quoting from the Kauffman Index of Entrepreneurial Activity for 1996-2010, written by Robert W. Fairlie in March 2011: 26% of entrepreneurial activity was produced by people ages 20-34 versus 39% produced by people ages 55-64.  My view is that the disparity will not only be maintained but will increase because we have an aging and shrinking workforce.

More than five million Americans ages 55 and older (55+) have their own businesses or are self-employed, according to the Small Business Administration (SBA), indicating an increased interest in entrepreneurship opportunities.  And the SBA reports that the number of self-employed people ages 55 to 64 is soaring, climbing 52% from 2000 to 2007.  Here are some of the reasons why people are changing careers at 55, particularly at a time when unemployment is high and jobs are scarce:

• After years of working for others, acting in accordance with established policies and procedures, experienced workers are creating their own business, enabling them to “march to their own drummer.”

• Many people 55+ are attracted by the opportunity to create a business that is responsive to their own unique needs, interests, and desires.

• The need for additional income to maintain a standard of living or the desire to have additional income for discretionary spending

• The desire for continued interesting/stimulating/challenging work to maintain cognitive skills and abilities

• The desire to maintain self-esteem and self-fulfillment by continuing in productive activities that add value

• The desire to maintain relationships with the outside world and to remain socially connected

• Recognition that, with knowledge of their increased longevity and vulnerability of their financial resources through market fluctuations, it may be necessary or desirable to generate additional income

Let’s talk about the biggest driving force–the impact of demographic change in America.  When the Social Security Act was passed in 1935, few people lived past the established retirement age of 65.  The reality is that almost 30 years were added to longevity from beginning to end of the 20^th Century.  People are not only living longer but in substantially better health.  This, of course, depends upon three essential tenets: remaining intellectually engaged, socially connected and physically fit.  According to a recent study conducted by the Harvard School of Public Health, those who are committed to these tenets enjoy better health, report a greater satisfaction with life, and live at least four years longer than those who don’t.

With so many more years to live than people expected when younger, sitting on the sidelines with nothing to do for another 20-30 years doesn’t look so attractive.  Another factor is that we have moved in the U.S. from an industrial to a knowledge-based society, with more than 80% of the private, non-farm sector in knowledge-based services and only about 11% in manufacturing.

We still tend to think about the traditional two stages of adulthood: early adulthood from 18 to 40 and mature adulthood from 40 to 62 or 65.  Then, the traditional thinking goes, you are out of the game and the headlights are getting dim.  But the reality is that, with the advent of demographic change and people living appreciably longer lives in better health, there is a new and third stage of adulthood from 62-85.  And people are increasingly working into their latter 80s, 90s and even beyond.

Because we are still recovering from the global economic crisis, most companies have not yet begun to recognize that they will shortly be facing skills shortages. And there is another problem.  Because of a shrinking number of younger people coming into the workforce, they will be in even greater demand and will be changing jobs more rapidly. In 2010, the average job tenure for workers 20-35 was 2.3 years versus 9.9 years for older workers 50-65.  With the 78 million Baby Boomers reaching 65 in 2011 and each year thereafter through 2029 at the rate of 4.2 million per year, companies will be facing serious skills shortages unless they begin to utilize this large and growing talent pool of people with EESP.

Meanwhile, with unemployment slated to remain above 8% and economic growth low for the foreseeable future, there is one bright spot for retired workers on a gloomy employment horizon–the entrepreneurial path. Through a non-profit organized by my firm in 2006, the Center for Productive Longevity (CPL), we are substantially involved in organizing four meetings in 2012, the first of which was held on March 27 at the Kauffman Foundation in Kansas City.  Other sponsors were AARP and the National Association for Community College Entrepreneurship (NACCE).  The title for all four events is “Spotlight on Entrepreneurial Opportunities for Baby Boomers.”

Our goal was to attract 100 Baby Boomers 50+ for this event (reduced from 55+ because AARP was a sponsor and this is their threshold membership age) for which there was no charge. When I left for a quick trip on February 8, we had attracted 50 participants. When I returned to the office on February 13, the number had climbed to 141 and we promptly closed registrations.  We actually had 130 participants at the meeting, including 20 spouses, and there was a waiting list of more than 35.  This provides you with some idea about the growing wave of interest in Baby Boomer entrepreneurship.

We anticipate the same or a greater degree of interest in the major metro areas for the next three meetings:

• Babson College in Wellesley, MA (near Boston) on September 14
• Kellogg School of Management/Northwestern University in Chicago on October 11
• University of Denver on November 15

We have carefully selected academic institutions with a major focus on entrepreneurship because they are training the entrepreneurs of tomorrow, and I believe we will see substantially larger numbers of older entrepreneurs as we move away from the more traditional forms of employment.  After all, new-business creation has been the backbone of the American economy since Paul Revere, with his own silversmith company, went on his famous ride to warn that the British were coming.

Back to thinking about becoming an entrepreneur, here are the factors that need to be considered:

• Risks and rewards
• Strategies for identifying and selecting potential business opportunities
• Desirability of taking skills and aptitude tests to ascertain your professional and personal strengths
• Importance of developing a business plan or at least a business concept statement
• How to evaluate a business plan or concept statement
• Creation of a personal vision
• Exploration of funding support
• How to overcome fears and concerns/real and artificial barriers
• Importance of conducting research on the competition
• Importance of developing an Advisory Board or Planning Committee to meet several times a year to provide counsel and guidance on your new venture     

Finally, another acronym I like is the three Ps: passion, purpose and perseverance.  These are critical qualities in pursuing the entrepreneurial path, and I would add a few others:

• Courage/willingness to take risks
• Positive attitude and optimistic spirit
• Strength of character/integrity
• Vision/ability to see things as they might be
• Self-confidence and assurance
• High energy level
• Resourceful and resilient
• Ability to accept rejection and turn failures into learning opportunities

You won’t need all of these qualities for changing careers at 55, but it would be desirable to have many of them.  Having created my own consulting firm more than 40 years ago and found it to be a great way to go, I have one more quote: “You don’t stop having fun when you grow older. You grow older when you stop having fun.” Good luck and godspeed for the growing number of senior entrepreneurs!

Note:  I have three books for suggested reading:

• Barreto, Hector V., The Engine of America: The Secrets to Small Business Success from Entrepreneurs Who Have Made It!  Hoboken: John Wiley & Sons, Inc., 2007.
• Price, Robert W., Roadmap to Entrepreneurial Success: Powerful Strategies for Building a High-Profit Business.  New York: AMACOM, 2004.
• Murphy, Bill Jr., The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship.  New York: Henry Holt and Company, LLC, 2010

As people continue to live longer and retire earlier, the term “Third-Stage Adulthood” has more relevance than ever before. Referring to people 62-85 years old, this stage of life is chock-full of senior workers who are qualified and ready to continue working after the traditional retirement age of 65 or sooner. This means that there is a large and growing talent pool with experience, expertise, seasoned judgment, and proven performance (referred to by CPL as EESP), to meet the workforce needs of the 21st century.

The concept of “Third-Stage Adulthood” was first conceived in a paper, “The Evolution of Adulthood: A New Stage” co-authored in 2000 by Dr. Elliott Jaques, who conceived the mid-life crisis in 1965, and CPL Founder and CEO William Zinke. Zinke created CPL, which is based in Boulder, Colorado, to stimulate the substantially increased engagement of people 55 and older in productive activities, paid and volunteer, where they are qualified and ready to continue adding value.

Now in 2012, the concept of Third-Stage Adulthood is even more important than when the term was coined. CPL urges everyone to recalibrate their thinking for this new reality because the results could be dire if action isn’t taken. If Baby Boomers are pushed to the sidelines, the nation’s entitlement programs (e.g. Social Security and Medicare) will become unsustainable even sooner than projected. To prevent this crisis, the country should tap the talent pool of retired workers in Third-Stage Adulthood and put their knowledge, skills and abilities to use.

“Embracing ‘Third-Stage Adulthood’ can be a positive life-changer as people enter this next phase,” says William Zinke, 85. “The concept urges society to recognize that older people can continue to add value for significantly longer periods of time and that they should be viewed as individuals, instead of all being lumped under the clichés of being ‘over the hill’ and ‘out of the game.’  The result will be that millions of older people with EESP can continue contributing to, instead of drawing from, the national economy and society.”

CPL subscribes to a concept of adulthood that falls into three stages, described as follows:

First stage of early adulthood (18-40) – the time to build experience and expertise; to decide whether to work in the private, public, or non-profit sectors and perhaps even gain some cross-sector experience; to decide whether to develop a career in a company or to become an entrepreneur; to focus on the development of particular skills and abilities; to build a solid foundation for the next two adult stages.

Second stage of mid-adulthood (40-62) – the time when experience and expertise produce problem- solving capabilities and sound judgment (CPL likes the saying that good judgment comes from experience and experience comes from bad judgment) and perhaps even the beginnings of wisdom. Any mid-life crises have been traversed and assurance and self-confidence have become more firmly established as a result of learning how to function more effectively. There is also continuing growth and development during this stage.

New-stage of mature adulthood (62-85) – the time when many individuals, although not all (e.g. people who have been engaged primarily in physical labor, who have not maintained a commitment to physical fitness, or who have debilities or disabilities), can continue to be significant contributors. They have had about 40 years to gain experience and expertise, to develop seasoned judgment and proven records of performance and to build their intellectual and social capital. While documented research indicates that cognitive capability may have plateaued for some, the intellectual growth curve continues to move upward for people who have continued to remain productively engaged.

CPL launched the Later-Life Story Contest on June 1 to solicit empowering stories from people 55 and older. The competition has two separate categories: Entrepreneur Success Stories and Inspirational Later-Life Stories. A panel of three independent judges will select one winner from each category who will receive $1,000 and a specially designed trophy. CPL will post the best stories on its website (ctrpl.org) throughout the contest under “Success Stories.” The contest runs through August 31, and winners will be announced on October 1, 2012.

To submit a story, visit www.ctrpl.org/laterlifestorycontest and complete a submission form. Entrants must be at least 55, have a compelling story to share, and be willing to have it posted on the CPL website for viewing and for possible publication. Stories may also be emailed to James Hooks, CPL’s Director of Marketing and Technology, at jhooks@ctrpl.org.

For more information on CPL, the contest and Entrepreneur Success Stories, visit ctrpl.org or Facebook at facebook.com/CTRPL.

By: William K Zinke

Founder & President of the Center for Productive Longevity

All readers may be familiar with ESP–extrasensory perception.  I propose that we focus on EESP–experience, expertise, seasoned judgment and proven performance. This is what Baby Boomers can provide versus their younger counterparts. I like the old saying: “Good judgment comes from experience, and experience comes from bad judgment.”

Quoting from the Kauffman Index of Entrepreneurial Activity for 1996-2010, written by Robert W. Fairlie in March 2011: 26% of entrepreneurial activity was produced by people ages 20-34 versus 39% produced by people ages 55-64.  My view is that the disparity will not only be maintained but will increase because we have an aging and shrinking workforce.

More than five million Americans ages 55 and older (55+) have their own businesses or are self-employed, according to the Small Business Administration (SBA), indicating an increased interest in entrepreneurship opportunities.  And the SBA reports that the number of self-employed people ages 55 to 64 is soaring, climbing 52% from 2000 to 2007.  Here are some of the reasons why people are changing careers at 55, particularly at a time when unemployment is high and jobs are scarce:

• After years of working for others, acting in accordance with established policies and procedures, experienced workers are creating their own business, enabling them to “march to their own drummer.”

• Many people 55+ are attracted by the opportunity to create a business that is responsive to their own unique needs, interests, and desires.

• The need for additional income to maintain a standard of living or the desire to have additional income for discretionary spending

• The desire for continued interesting/stimulating/challenging work to maintain cognitive skills and abilities

• The desire to maintain self-esteem and self-fulfillment by continuing in productive activities that add value

• The desire to maintain relationships with the outside world and to remain socially connected

• Recognition that, with knowledge of their increased longevity and vulnerability of their financial resources through market fluctuations, it may be necessary or desirable to generate additional income

Let’s talk about the biggest driving force–the impact of demographic change in America.  When the Social Security Act was passed in 1935, few people lived past the established retirement age of 65.  The reality is that almost 30 years were added to longevity from beginning to end of the 20^th Century.  People are not only living longer but in substantially better health.  This, of course, depends upon three essential tenets: remaining intellectually engaged, socially connected and physically fit.  According to a recent study conducted by the Harvard School of Public Health, those who are committed to these tenets enjoy better health, report a greater satisfaction with life, and live at least four years longer than those who don’t.

With so many more years to live than people expected when younger, sitting on the sidelines with nothing to do for another 20-30 years doesn’t look so attractive.  Another factor is that we have moved in the U.S. from an industrial to a knowledge-based society, with more than 80% of the private, non-farm sector in knowledge-based services and only about 11% in manufacturing.

We still tend to think about the traditional two stages of adulthood: early adulthood from 18 to 40 and mature adulthood from 40 to 62 or 65.  Then, the traditional thinking goes, you are out of the game and the headlights are getting dim.  But the reality is that, with the advent of demographic change and people living appreciably longer lives in better health, there is a new and third stage of adulthood from 62-85.  And people are increasingly working into their latter 80s, 90s and even beyond.

Because we are still recovering from the global economic crisis, most companies have not yet begun to recognize that they will shortly be facing skills shortages. And there is another problem.  Because of a shrinking number of younger people coming into the workforce, they will be in even greater demand and will be changing jobs more rapidly. In 2010, the average job tenure for workers 20-35 was 2.3 years versus 9.9 years for older workers 50-65.  With the 78 million Baby Boomers reaching 65 in 2011 and each year thereafter through 2029 at the rate of 4.2 million per year, companies will be facing serious skills shortages unless they begin to utilize this large and growing talent pool of people with EESP.

Meanwhile, with unemployment slated to remain above 8% and economic growth low for the foreseeable future, there is one bright spot for retired workers on a gloomy employment horizon–the entrepreneurial path. Through a non-profit organized by my firm in 2006, the Center for Productive Longevity (CPL), we are substantially involved in organizing four meetings in 2012, the first of which was held on March 27 at the Kauffman Foundation in Kansas City.  Other sponsors were AARP and the National Association for Community College Entrepreneurship (NACCE).  The title for all four events is “Spotlight on Entrepreneurial Opportunities for Baby Boomers.”

Our goal was to attract 100 Baby Boomers 50+ for this event (reduced from 55+ because AARP was a sponsor and this is their threshold membership age) for which there was no charge. When I left for a quick trip on February 8, we had attracted 50 participants. When I returned to the office on February 13, the number had climbed to 141 and we promptly closed registrations.  We actually had 130 participants at the meeting, including 20 spouses, and there was a waiting list of more than 35.  This provides you with some idea about the growing wave of interest in Baby Boomer entrepreneurship.

We anticipate the same or a greater degree of interest in the major metro areas for the next three meetings:

• Babson College in Wellesley, MA (near Boston) on September 14
• Kellogg School of Management/Northwestern University in Chicago on October 11
• University of Denver on November 15

We have carefully selected academic institutions with a major focus on entrepreneurship because they are training the entrepreneurs of tomorrow, and I believe we will see substantially larger numbers of older entrepreneurs as we move away from the more traditional forms of employment.  After all, new-business creation has been the backbone of the American economy since Paul Revere, with his own silversmith company, went on his famous ride to warn that the British were coming.

Back to thinking about becoming an entrepreneur, here are the factors that need to be considered:

• Risks and rewards
• Strategies for identifying and selecting potential business opportunities
• Desirability of taking skills and aptitude tests to ascertain your professional and personal strengths
• Importance of developing a business plan or at least a business concept statement
• How to evaluate a business plan or concept statement
• Creation of a personal vision
• Exploration of funding support
• How to overcome fears and concerns/real and artificial barriers
• Importance of conducting research on the competition
• Importance of developing an Advisory Board or Planning Committee to meet several times a year to provide counsel and guidance on your new venture     

Finally, another acronym I like is the three Ps: passion, purpose and perseverance.  These are critical qualities in pursuing the entrepreneurial path, and I would add a few others:

• Courage/willingness to take risks
• Positive attitude and optimistic spirit
• Strength of character/integrity
• Vision/ability to see things as they might be
• Self-confidence and assurance
• High energy level
• Resourceful and resilient
• Ability to accept rejection and turn failures into learning opportunities

You won’t need all of these qualities for changing careers at 55, but it would be desirable to have many of them.  Having created my own consulting firm more than 40 years ago and found it to be a great way to go, I have one more quote: “You don’t stop having fun when you grow older. You grow older when you stop having fun.” Good luck and godspeed for the growing number of senior entrepreneurs!

Note:  I have three books for suggested reading:

• Barreto, Hector V., The Engine of America: The Secrets to Small Business Success from Entrepreneurs Who Have Made It!  Hoboken: John Wiley & Sons, Inc., 2007.
• Price, Robert W., Roadmap to Entrepreneurial Success: Powerful Strategies for Building a High-Profit Business.  New York: AMACOM, 2004.
• Murphy, Bill Jr., The Intelligent Entrepreneur: How Three Harvard Business School Graduates Learned the 10 Rules of Successful Entrepreneurship.  New York: Henry Holt and Company, LLC, 2010