The first of America’s 78 million baby boomers, who turn 60 in January, will bring sweeping changes to business, careers and lifestyles. New Directions, a career/life transition firm for senior executives, is witnessing these changes first hand. Individuals they work closely with are redefining the very notion of retirement.
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Following are key baby boomer trends that New Directions has identified:
- Redefining retirement – With an increased lifespan of healthy years ahead, many boomers are opting out of retirement and looking for meaningful activities in their next phase of life. Some are finding meaning in nonprofit work or new businesses. Others are developing a balanced « portfolio » of work/life activities, including: teaching, holding board positions, working part-time, volunteering and enjoying leisure activities.
- Boards seeking retirement-age executives – Due to Sarbanes-Oxley directives for independent directors and a scarcity of CEOs to fill positions, there is growing demand for retirement-age individuals to sit on boards. According to the 2003 Spencer Stuart Board Index, 12 percent of new outside directors were retired CEOs, chairmans, etc., compared to only six percent in 1998. This trend is expected to continue. Board positions are attractive to executives who desire a better work/life balance, while staying involved in business.
- Succession planning and retention – While succession planning is typically viewed as a way to groom up-and-comers, savvy companies are also addressing the needs of exiting senior management. When companies are aware of retirement plans of senior executives, they can better prepare for succession and explore flexible ways to retain senior talent – a key concern given the anticipated workforce deficit as boomers retire. Additionally, executives who have planned for the next stage of their lives are more fulfilled, focused and productive.
- The new volunteerism – Individuals today are volunteering at higher levels, leveraging professional skills to help manage and operate nonprofits. They are having a major impact on nonprofits in many ways – from establishing farms for training homeless individuals to running Massachusetts operations for Katrina evacuees.
- Starting a business later in life – After spending years in the corporate world, some retirement-age executives are following their dreams and starting businesses as diverse as alpaca farming, lighthouse item sales or hardware chains. They enjoy more time, flexibility and a renewed sense of purpose.
- Making the switch from profit to nonprofit – Many long-time corporate executives are finding fulfillment by making the leap to nonprofit. Organizations are benefiting from the business acumen that these seasoned executives bring.
« There is no longer a script to follow when retiring, » said Jeff Redmond, president of New Directions. « People living longer, healthier lives are creating new possibilities for themselves, often in ways they may never have imagined. Many people see this stage of life as a new beginning. Businesses need to be attuned to these new realities and flexible in their approaches to retaining senior talent. »
New Directions can connect reporters with dynamic individuals who exemplify the changing face of retirement and are pursuing new opportunities.
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About New Directions
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Founded in 1986, Boston-based New Directions (www.newdirections.com) is a career/life transition firm. New Directions has worked with 1,900 senior executives, coaching them regarding full-time positions or creating a portfolio of work/life activities as an alternative to retirement. In 1996, New Directions started a nonprofit, The Foundation for New Directions, which provides mentors – senior executives in transition – to help veterans and low-income adults obtain jobs or become self-employed.