Whether you’re nearing retirement or midway through your first career, here’s help for staging a successful second-act career.
What job would you love to be doing right now, and what is involved in pursuing the career shift to make it happen?
This line of thinking could lead to a second-act career — basically, a mid-career or post-retirement career shift to pursue personally meaningful work. With lifespans increasing, retirement is becoming a perfect time to stage such an encore. In fact, those 65 and older are on track to make up nearly 10% of the workforce by 2032.
A second-act career shift has the potential to be the most rewarding, whether you’re mid-career or nearing retirement.
Start with self-reflection
Stephanie Duignan, Advice and Planning director, Wealth & Investment Management, Wells Fargo Bank, N.A., underscores the importance of beginning your career-shift journey by taking the time to clarify your objectives. What do you want a new career path to do for you?
Are you looking to utilize new skills, align your personal values, explore a passion, or contribute to your community? Or are you unsatisfied in your current role and why? What level of responsibility are you seeking?
Consider what you need this career shift to do for you economically. Career and income are not always linked, but it is important to do your planning as you may be moving into a new financial phase of your life and make sure you can afford to make the change. Anytime you experience change, there will be potential trade-offs.
Think through what you hope to gain in a new opportunity by defining what success will look like. What do you enjoy doing where you lose track of time? What would fulfill you and provide meaning?
Keep in mind that your objectives and perspectives may change over time as you near the timing for your career shift.
For example, you may be focused on starting a business venture or writing a book, but as the time nears to make the career shift, your priorities and objectives may change, either economically or personally. View this as an evolving self-reflective journey, not a one-and-done decision.
Share your thoughts with your family, friends, mentors, and advisors asking for their honest input. It may feel overwhelming to make a change, but starting with self-reflection helps you better define a course of action.
Use this as an opportunity to explore and think broadly
There are many types of career shifts you can make. You could pursue another role in the same industry, start your own business, or move to the nonprofit sector. This is a time to expand your thinking.
How do you determine whether you will be happy in your proposed new career? Duignan provides some useful suggestions:
- Conduct informational interviews with your professional and personal network to explore options.
- Reach out to former co-workers and bosses with similar interests.
- Reach out to people who are in a career path of interest to share their lessons learned and experiences. Ask if they are open to job shadowing.
Once you have identified a potential career path, research what skills, education, and experiences are needed and the salary and growth potential. Sites such as Glassdoor, Indeed, LinkedIn, and others can provide valuable information.
When you have a clear idea of what is needed, map out your skills, education, interests, and strengths, as these are all transferable to your career change. These can be both professional and personal skills you have gained through your current career, volunteer work, life experiences, or hobbies.
Duignan emphasizes that it is important not to underestimate your transferable skills. If you do identify a skill gap, decide how you will gain the necessary skills, education, or experience. Consider online courses, community college classes, workshops, and volunteer work.
Your second act will require planning to help ensure its success.
Plan your career shift in advance
Your second act will require planning to help ensure its success. Whether you’re going to work for an organization or start your own business, you should be thinking in advance about your next steps before you make the switch and discuss potential tax and financial implications with trusted advisors.
For example, a new business venture may require more capital than a passion project. An honest look at your cash flow and investments could help determine whether you need to stay in your first-act career longer to support your next venture. Your career-shift plans could also impact your estate planning. Let’s say your second-act business venture becomes successful: How might that impact your plans?
Be sure your career-shift planning includes both likely and potential outcomes — and plan to discuss them with professionals such as financial advisors, attorneys, and CPAs.
Wealth & Investment Management (WIM) provides financial products and services through various bank and brokerage affiliates of Wells Fargo & Company.
