The Challenges of Launching an Encore Career

Many people dream about launching a second career in a field they have always wanted to try. But the transition into an encore career can be a long and costly process.
Most people earn a significantly lower amount of money (43 percent) or no money at all (24 percent) during the transition from one job to the next, according to a recent MetLife Foundation and Civic Ventures survey conducted by Penn Schoen Berland. The online survey of 253 adults between ages 44 and 70 who are currently in encore careers found that over half (57 percent) of these older workers had to tap their personal savings to make ends meet during the transition.
"That transition is not necessarily a very easy or a sure thing," says Jim Emerman, executive vice president of Civic Ventures. "The financial hardship of the transition, while not really surprising, really jumped out at us as one of the big challenges."
It often takes a significant amount of time for older workers to launch second careers. Three quarters of the survey respondents currently in encore careers experienced an employment gap of longer than 6 months. And a third (34 percent) of these older workers were unemployed for two or more years before they found another job. Some people used that time to volunteer (23 percent) or retrain by taking college courses (20 percent).
When Lisa Roger, 53, a former software engineering project director, was laid off in 2009, she faced a substantial reduction in income for about 14 months. She had to use her savings, collect unemployment benefits, and sign up for COBRA continuing health coverage to make ends meet. During the transition she participated in the Encore Hartford program in Storrs, Conn., a fellowship that helps experienced professionals transition to the nonprofit sector. She eventually found a new job as a family self-sufficiency services manager for the Norwalk Housing Authority. "Today I don't make nearly the salary that I did as a software engineer and I am ok with that," Roger says. "The work is incredibility rewarding. I know I am making a difference." The new job has caused her to reevaluate her retirement plans. "I used to feel that I was going to retire at a really early age, before 65," Roger says. "The career that I am in now, I see myself going beyond that because it is so rewarding."
Older workers are motivated to make a career change by a variety of financial and personal reasons. Insufficient income (28 percent) and inadequate savings (25 percent) were among the top reasons for making the switch. But realizing that some lifetime goals have yet to be fulfilled (28 percent) and a desire to make a bigger difference in the world (21 percent) also play a large role in decisions to move on to something new. Sometimes the transition is sparked by health problems (15 percent), an empty nest (11 percent), or hitting a specific age such as 50 (12 percent). Some people also speak of a spiritual calling into a new line of work (12 percent).
Most people switched into new jobs at for-profit businesses (22 percent) or nonprofit organizations (20 percent). Education (19 Percent), health care (15 percent), and government agencies (6 percent) are also popular second career choices. "Some people will work longer in their current jobs, whatever they are, and other people will want a change," says Emerman. Often the new job comes with shorter hours and a more flexible schedule. People in encore careers work an average of 30.5 hours per week, the Civic Ventures survey found.
Almost half of people who made a career change (47 percent) did so between ages 50 and 59. Only 3 percent of those surveyed changed careers at age 60 or older. The typical person in an encore career expects to continue working for an average of another 11 years and eventually retire at an average age of 69. They have an average of 24 years of work experience.
Many individuals need to keep working for the income (69 percent) and benefits (30 percent). Other people launch second careers to stay active and productive (58 percent), pursue a new challenge (6 percent), and because they simply enjoy the work (31 percent). Some older workers also want to give something back by helping others in the community (35 percent) and staying involved with other people (19 percent).
"People are living much longer and they are healthier, and so they want to stay engaged. People need and want and are able to work longer," says Emerman. "If people are out of work now or worried about their current job, the idea of a next career that combines continued financial security with personal satisfaction and something that they are passionate about is very strong."

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The Importance of Being Self-Reliant in Retirement

Most baby boomers are at various stages of preparing for retirement, depending on whether they were born at the beginning or end of their generation. The smart ones realize that effective planning starts well before retirement age. Important calculations need to be made to determine what it will take to survive financially throughout the retirement years. Post-work lifestyles and passions also need to be defined, and consideration for unexpected events should be taken into account whenever possible.
Counting on others to provide for us in our old age is a risky proposition. In the U.S., the ratio of working-age citizens between ages 15 and 64 supporting those over 64 is currently 5:1. By the year 2050 this ratio will drop to 3:1, according to United Nations data. In China things are even worse. They will move from the current 9:1 ratio to 3:1. And in Japan the ratio will be 1:1 in 2050.
It is important to rely on ourselves and our own resourcefulness. Society is changing to deal with the aging demographic with less generous pension plans, longer working hours, and an increase in the retirement age. Back in the 1980s, 38 percent of people had traditional pensions. By 2008 the number dropped to 20 percent. If a traditional pension will not be part of our retirement equation, we need to fill in the blank with other investments and savings alternatives.
Don't count on Social Security to foot your entire retirement bill either. With an average monthly amount of $1,230 paid at the beginning of 2012, it should only be viewed as a supplement to your other sources of retirement income. It is a piece of the puzzle, but should not be considered the entire solution.
Health demands and expenses will increase as we age. Fidelity estimates that a 65-year-old couple retiring in 2011 will need $230,000 to cover likely out-of-pocket medical expenses in retirement. And this estimate does not even include the cost of long-term care. Such burdens could prove catastrophic if we do not plan ahead with additional savings, health insurance, and long-term care coverage.
Most people approaching retirement would like the option to stay in their current home if they choose to and remain healthy enough to safely do so. Paying down your mortgage over the years provides flexibility, and the equity can be available for emergencies. Whether a decision is made to stay in the existing home or sell, having the option empowers senior citizens.
Remaining independent in retirement requires planning ahead, realistically evaluating your situation, and taking appropriate action to provide for your retirement needs. You can't count on the government or your former employer to finance your retirement years. It's something you need to take care of yourself.

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World's biggest Titanic attraction opens in Belfast

The largest Titanic visitor attraction in the world opened in the ship's Belfast birthplace on Saturday, some 100 years after the doomed liner was built in the same yards.
Almost 100,000 tickets for Titanic Belfast, a striking aluminium-clad building which tells the famous ship's story through special effects, interactive screens and a ride, have been sold ahead of the opening.
Organisers hope the £97 million ($155 million, 116 million euro) centre can boost tourism in the British province, which was torn apart by sectarian strife for three decades until the late 1990s.
"We want to bring people to Northern Ireland not just to see what a generation 100 years ago were able to achieve, but what this generation can achieve in this new era of peace," said First Minister Peter Robinson.
Cyril Quigley, a 105-year-old who watched the Titanic's launch more than a century ago, joined the province's leaders at the opening of the building, which takes the form of four of the ship's huge prows.
"All I saw was this big thing sliding out into the water," Quigley said as he recalled watching with his parents. "I was only four and half."
Quigley said the new centre, which rose from the derelict Harland and Wolff shipyard, was "wonderful".
"I often thought they would make another plastic ship here and have it as a restaurant or something, but this is fantastic," he said. "It's like our Sydney Opera House."
The biggest, most ambitious ship of the age hit an iceberg on its maiden voyage across the Atlantic Ocean from Southampton to New York, sinking on April 15, 1912. Of the 2,224 people aboard, 1,514 perished.
Organisers hope the six-storey Titanic Belfast, which also features a banqueting space containing a replica of the ship's grand staircase, will attract 425,000 visitors in its first year, including many from Asia.

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Detained Nigerian newspaper journalists released

LAGOS, Nigeria (AP) — An official says two Nigerian journalists have been freed after being detained without charges for more than a week by the nation's secret police following writing stories about a radical Islamist sect and alleged military abuses.
Mohammed Garba, president of the Nigerian Union of Journalists, said Tuesday that Musa Mohammed Awwal and Aliyu Saleh, journalists with the weekly Hausa language newspaper, Al-Mizan, were freed around noon. Garba said the two men had not been abused or mistreated while in custody. He said the two men may have to return for questioning again by Nigeria's secretive State Security Service.
The two journalists were arrested Dec. 24 at their homes in Kaduna. Their newspaper has published a series of stories about alleged military abuses and the sect known as Boko Haram.

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C. African Republic capital fears rebel attack

BANGUI, Central African Republic (AP) — Kpademona Marcel and other residents of the capital of Central African Republic have watched in fear as rebels from the country's north seized control of more than half the country in less than a month. On Tuesday, all he could do was pray that a solution to the crisis could be found without the violence reaching Bangui.
"We are afraid for our nation and for our fellow citizens in the countryside," Marcel said, standing on the steps of the Notre Dame cathedral before a New Year's Day Mass. "The rebels are imposing themselves on the population and stealing things. We are here praying for peace."
As a new year began, the fate of the capital with 700,000 people, remained unclear. Government forces backed by a regional multinational force held a line in Damara, just 75 kilometers (45 miles) from Bangui. The rebels hold the city of Sibut, about 185 kilometers (115 miles) from Bangui.
While President Francois Bozize, after nearly a decade in power, has proposed a coalition government to include the rebels, a spokesman for the alliance of rebel groups advancing through the country said Monday they did not trust his offer. Former colonial power France already has said it will not protect Bozize's regime and has about 600 troops in the country just to protect its own interests.
Trucks full of soldiers bounced on the rutted roads of Bangui that are dotted with shacks where people can charge their mobile phones. Police officers stopped vehicles at intersections in another sign of stepped up security in this capital at the heart of Africa where even the banana and palm tree leaves are coated in heavy red dust from the earth.
Troops from neighboring nations arrived in the country, with a contingent from Gabon expected Tuesday. Their arrival comes a day after about 120 soldiers flew in from Republic of Congo with a mission to help stabilize the area between rebels and the government forces.
The political instability already has prompted the United States government to evacuate its ambassador and about 40 other people. There have been no mass civilian evacuations from the capital, though many residents have temporarily relocated to the southern side of Bangui, considered further from the path of a potential rebel invasion arriving from the north.
One woman in Bangui said she knew many people who already had fled the city but said she had too many family members to leave herself.
"I have five children and two grandchildren. I prefer to stay here and die with my children if it comes to that," she said, giving her name only as Lucienne.
In the Bimbo neighborhood, traders went about their business, selling everything from leafy greens to meat at roadside stands.
"We don't support what the rebels are doing," said banana farmer Narcisse Ngo, as a young boy played nearby with a monkey corpse for sale along with other meat. "They should be at the table negotiating without weapons. We are all Central Africans."
The landlocked nation of 4.4 million people is rich in diamonds, gold and uranium and yet remains one of the poorest countries in the world. Central African Republic has suffered many army revolts, coups and rebellions since gaining independence from France in 1960.
The rebels behind the current instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn't fully implemented and has made a variety of demands including payments to former combatants.

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Stampede after fireworks kills 61 in Ivory Coast

ABIDJAN, Ivory Coast (AP) — A crowd stampeded after leaving a New Year's fireworks show early Tuesday in Ivory Coast's main city, killing 61 people — many of them children and teenagers — and injuring more than 200, rescue workers said.
Thousands had gathered at the Felix Houphouet Boigny Stadium in Abidjan's Plateau district to see the fireworks. It was only the second New Year's Eve fireworks display since peace returned to this West African nation after a bloody upheaval over presidential elections put the nation on the brink of civil war and turned this city into a battle zone.
With 2013 showing greater promise, people were in the mood to celebrate on New Year's Eve. Families brought children and they watched the rockets burst in the nighttime sky. But only an hour into the new year, as the crowds poured onto the Boulevard de la Republic after the show, something caused a stampede, said Col. Issa Sako of the fire department rescue team. How so many deaths occurred on the broad boulevard and how the tragedy started is likely to be the subject of an investigation.
Many of the younger ones in the crowd went down, trampled underfoot. Most of those killed were between 8 and 15 years old
"The flood of people leaving the stadium became a stampede which led to the deaths of more than 60 and injured more than 200," Sako told Ivory Coast state TV.
Desperate parents went to the city morgue, the hospital and to the stadium to try to find missing children. Mamadou Sanogo was searching for his 9-year-old son, Sayed.
"I have just seen all the bodies, but I cannot find my son," said a tearful Sanogo. "I don't know what to do."
State TV showed a woman sobbing in the back of an ambulance; another was bent over on the side of the street, apparently in pain; and another, barely conscious and wearing only a bra on her upper body, was hoisted by rescuers. There were also scenes of small children being treated in a hospital. One boy grimaced in pain and a girl with colored braids in her hair lay under a blanket with one hand bandaged. The death toll could rise, officials said.
After the sun came up, soldiers were patrolling the site that was littered with victims' clothes, shoes, torn sandals and other belongings. President Alassane Ouattara and his wife Dominique visited some of the injured in the hospital. Mrs. Ouattara leaned over one child who was on a bed in a crowded hospital ward and tried to console the youngster. The president pledged that the government would pay for their treatment, his office said.
The government organized the fireworks to celebrate Ivory Coast's peace, after several months of political violence in early 2011 following disputed elections.
This is not Ivory Coast's first stadium tragedy. In 2009, 22 people died and over 130 were injured in a stampede at a World Cup qualifying match at the Houphouet Boigny Stadium, prompting FIFA, soccer's global governing body, to impose a fine of tens of thousands of dollars on Ivory Coast's soccer federation. The stadium, which officially holds 35,000, was overcrowded at the time of the disaster.
A year later, two people were killed and 30 wounded in a stampede at a municipal stadium during a reggae concert in Bouake, the country's second-largest city. The concert was organized in the city, held by rebels at the time, to promote peace and reconciliation.
Ivory Coast is the world's largest cocoa producer, growing more than 37 percent of the world's annual crop of cocoa beans, which are used to make chocolate.

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Angola: Stampede kills 10 at religious gathering

JOHANNESBURG (AP) — Angolan media say 10 people, including four children, have died in a stampede during a religious gathering at a sports stadium in Luanda, the Angolan capital.
Angop, the Angolan news agency, cited officials as saying Tuesday that 120 people were also injured. The incident happened on New Year's Eve when tens of thousands of people gathered at the stadium and panic ensued. Faustino Sebastiao, spokesman for the national firefighters department, says those who died were crushed and asphyxiated.
The event in the southern African nation was organized by the Universal Church of the Kingdom of God, an evangelical group founded in Brazil.
In western Africa, a crowd in Ivory Coast stampeded after leaving a New Year's fireworks show early Tuesday, killing 61 people and injuring more than 200.

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South Africa: Mandela rests at home

JOHANNESBURG (AP) — South Africa's presidency says former leader Nelson Mandela is progressing with his recuperation from illness and doctors are closely monitoring his condition.
Presidential spokesman Mac Maharaj said Wednesday that "everything is moving OK" as 94-year-old Mandela rests at his home in Johannesburg after a hospital stay last month.
The former president received treatment for a lung infection and also had gallstones removed.
Maharaj says Mandela is "taking it easy" and is under "close medical attention."
Mandela spent 27 years in prison under apartheid and became South Africa's first black president in democratic elections in 1994.

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US home sales rise 2.1 percent in October

WASHINGTON (AP) — U.S. sales of previously occupied homes rose solidly in October, helped by improvement in the job market and record-low mortgage rates.
The increase along with a jump in homebuilder confidence this month suggests the housing market continues to recover.
The National Association of Realtors said Monday that sales rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million. That's up from 4.69 million in September, which was revised lower.
The sales pace is roughly 11 percent higher than a year ago. But it remains below the more than 5.5 million that economists consider consistent with a healthy market.
As the economy slowly recovers, more people have started looking to buy homes or rent apartments. Prices are steadily climbing, while mortgage rates have been low all year. At the same time, rents are rising, making the purchase of a single-family home or condominium more attractive.
"Altogether, the report is encouraging," said Michael Gapen, an economist at Barclays Capital. "Our view is that housing is in a recovery phase," he added, though it will be restrained by limited credit and modest job gains.
A separate report Monday showed confidence among homebuilders rose this month to its highest level in six and a half years. The increase was driven by strong demand for newly built homes and growing optimism about conditions next year.
The National Association of Home Builders/Wells Fargo builder sentiment index increased to 46, up from 41 in October. Readings below 50 suggest negative sentiment about the housing market. The index last reached that level in April 2006. Still, the index has been trending higher since October 2011, when it stood at 17.
The Realtors' group said Superstorm Sandy delayed some sales of previously occupied homes in the Northeast. Sales fell 1.7 percent there, the only region to show a decline. Those sales will likely be completed in future months, the group said.
The median price for previously occupied homes increased 11.1 percent from a year ago to $178,600, the Realtors' said.
A decline in the number of homes available for sale is helping push prices higher. There were only 2.14 million homes available for sale at the end of the month, the lowest supply in 10 years. It would take only 5.4 months to exhaust that supply at the current sales pace. That's the lowest sales-to-inventory ratio since February 2006.
Prices are also benefiting from the mix of homes being sold. Sales of homes priced at $500,000 and above have jumped more than 40 percent in the past year. Sales of homes and condominiums that cost less than $100,000 fell 0.6 percent.
There have been other positive signals from the housing market. Applications for mortgage loans to buy homes jumped 11 percent in the week ended Nov. 9, compared with a week earlier, the Mortgage Bankers' Association said last week. Purchase applications are up 22 percent in the past year.
Foreclosures are slowing. The number of properties that began the foreclosure process in the first 10 months of the year fell 8 percent compared with the same period last year, RealtyTrac said last week.
And builders broke ground on new homes and apartments at the fastest pace in more than four years in September. The jump could help boost the economy and hiring.
Still, the market has a long way back to full health. Many potential home buyers cannot meet stricter lending standards or produce larger down payments required by banks.
That can be a particular problem for first-time homebuyers. They accounted for 31 percent of sales in October, down slightly from September and below the 40 percent that is common in a healthy market.
Federal Reserve Chairman Ben Bernanke said Thursday that banks' overly tight lending standards may be preventing sales and holding back the U.S. economy.

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News Summary: US home sales rise 2.1 pct. in Oct.

SALES RISE: U.S. sales of previously occupied homes rose moderately in October, helped by improvement in the job market and record-low mortgage rates. Sales rose 2.1 percent in October to a seasonally adjusted annual rate of 4.79 million according to the National Association of Realtors.
INVENTORIES: A decline in housing inventory is helping push prices higher. There were only 2.14 million homes available for sale at the end of the month, the lowest in 10 years.
GAINS LIKELY TO CONTINUE: As the economy slowly recovers, more people have started looking to buy homes or rent apartments. Mortgage rates are at record lows and rents are rising. That makes buying a home more attractive.

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