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The anomaly is that people in America are living 30 years longer than people in the 20^th century but only working two years longer.  In 2000, the average retirement age was 62, and the average retirement age in 2010 was 64.  Many of the recent retirements were involuntary: the massive lay-offs between 2008-2012 because of the Great Recession, corporate mergers and consolidations, work being outsourced to other countries, increased automation, and other factors.  Many were also voluntary as employees accepted attractive severance packages or just wanted to get off the corporate treadmill.

Here are the seven principal reasons why many people 55 and older (55+) want to continue working after retirement: 

• The need for additional income to maintain a standard of living or the desire to have additional income for discretionary spending
• 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 through a career after retirement
• 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
• The attraction of continued part-time work, without the responsibility and stress of a full-time job, to enhance the satisfaction with life and overall feeling of well being
• The opportunity for flexible workplace options that offer greater choices than full-time work plus an attractive benefits package that desirably includes healthcare coverage

My consulting firm, Human Resource Services, Inc. (HRS) organized a “Survey on the Strategic Involvement of HR in Fortune 1000 Companies” that was completed in November 2011 and conducted by Harris Interactive, with 25 major companies as sponsors.  Only 24% of the HR heads stated that their companies provided flexible workplace options.  The options include:

• Reduced working hours
• Reduced working days
• Flexible working times that may be variable
• Seasonal work
• Job sharing
• Telecommuting (i.e., working from home with telecommunications connections)
• Different work assignments (e.g., mentoring or training younger workers, a new functional or business area)
• Project assignments

As the economy improves and companies face the reality of an aging and shrinking workforce, many more will be required to develop flexible workplace options.  In a recent AARP survey, 80% of Baby Boomers indicated their intent to continue working, more than half on a part-time basis. Companies will be required to tap this large and growing talent pool of workers 55+ because of their experience, expertise, seasoned judgment and proven performance (we call that EESP).  And recent surveys conducted among Generation Y and Millennials indicate that many of them want more flexibility to spend time with their families and engage in other activities.

Companies would also be well advised to maintain databases of retired workers who may want to continue working on a part-time basis because it is substantially more efficient and cost effective to hire former employees who know the company and can continue to add value.   The alternative is to pay a fee to a staffing company for part-time help who don’t know the company, the people and the way it functions. 

HRS has created a nonprofit, the Center for Productive Longevity, with this mission:

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.

In furtherance of this mission, CPL will be working closely with the HR heads of major companies around the country to increase their focus on flexible workplace options, as well as reaching out to mid-size and smaller companies. For more information, please visit www.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.

New Belgium Brewing announced today that Asheville, NC has been selected as the new location for a second brewery. The 400,000-barrel brewery and packaging facility will provide New Belgium with additional capacity allowing the Colorado-based brewer to expand into new areas of distribution. Upon completion in 2015, the facility will initially create 50 new jobs in the Asheville area with more than 100 positions expected at full buildout.

“After several years of searching we are incredibly excited to have landed in Asheville,” said Kim Jordan, CEO and co-founder of New Belgium. “From the deep sense of community to the rich natural environment and the opportunity to revitalize a brownfield site near a vibrant downtown, Asheville has everything we’ve been looking for in a location for our second brewery.”

The 17.5-acre site located in the heart of the River Arts District will accommodate the 150,000 sq. ft. facility. The brewery will feature a 200-barrel brewing system, a tasting facility, and a process wastewater treatment center on-site. Tours will be available to the public. Total cost projections are over $100 million.     

“Today’s announcement by New Belgium will enhance the craft brewery cluster that is growing in North Carolina,” said Gov. Bev Perdue.  “The jobs and investment the company is committing will be a major boon for the region and for the state.” 

Construction is expected to begin in early 2013 with beer rolling off the line in early 2015. A full Asheville-specific press kit, a video statement from Kim Jordan and downloadable b-roll are available at http://www.newbelgium.com/files/presskit .

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