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Careers after retirement
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June 9, 1999: 8:50 a.m. ET
Seniors turn entrepreneurs to bolster income, fight age discrimination
By Staff Writer Shelly K. Schwartz
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NEW YORK (CNNfn) - Bud Teare, a retired insurance industry veteran, never expected to spend his Golden Years standing in line for the early bird special at the local diner.
He didn't much see himself as a regular on the links, either.
And so, after passing on the life insurance company he founded 40 years earlier, the 71-year old New Jersey-resident charted a new course for his future. He hasn't slowed down since.
"I am a great believer in staying productive," Teare said. "I think there are real advantages to staying active both physically and mentally."
Since retiring, Teare has helped spearhead a half-dozen volunteer projects, including renovation of his boyhood prep school and restoration of a local historic mill.
He also narrated World War II videos, conducted a series of personality interviews for the local television station, and he continues to hold educational seminars on the benefits of long-term life insurance plans for seniors. (He earns a commission for each new customer he brings in.)
"It's more than just fun and games," Teare acknowledged. "The extra income is helpful, and one of the things we certainly have become aware of is that we may be around longer than we used to think was the case."
The aging population
With life expectancies on the rise, experts say seniors these days can expect to spend nearly a third of their life in retirement. Many, like Teare, are finding creative new ways to maintain a fulfilling lifestyle while utilizing their skills to supplement their income.
"Human beings have a great need to be productive," said Nella G. Barkley, president of Crystal-Barkley Corp., a New York career consulting firm. "Whether or not you get paid for that work is your choice. But increasingly, people are feeling they have to earn additional income because of their economic situation -- because they haven't saved enough for their retirement or because they want those extras."
The American Association of Retired Persons reports that the labor force participation rate for persons 55 and older grew to 31.3 percent last year from 30.9 percent. At the same time, the unemployment rate for this segment of the population dropped to 2.7 percent, down from 4.3 percent just five years earlier.
By 2006, AARP also reports that the number of workers age 45 and older will surpass the 58 million mark and account for nearly 40 percent of the nation's work force.
Labor market crunch
Many older workers -- especially those in their 50s -- are taking advantage of the tight labor market and jumping back in to the 9 to 5 grind.
"As the unemployment rate has fallen, the opportunities for older workers has improved," said Sara Rix, AARP's senior policy adviser. "Employers have been desperate for choices and they are somewhat more receptive these days to hiring older workers than they have been in the past."
She noted, however, many of the jobs being extended to seniors are in the service sector, including fast-food establishments and drug stores that pay smaller wages.
AARP's employment and retirement specialist, Denise Loftus, said that can be a frustrating thing.
The wave of downsizing that swept over Corporate America in the late 1980s, she noted, displaced many middle-aged workers - many of whom accepted incentive packages to retire before they were ready.
Those workers who were in their 40s at the time have had a "very difficult time" finding another job with the same level of responsibilities and pay, Loftus said.
"It's a very discouraging practice," she said.
Among the 55-plus age group, the Bureau of Labor Statistics reports that 39.1 percent of men either have a job or are trying to find one. About 25 percent of women in the same age bracket are employed or hunting for work.
The data reveals that the majority of men in the senior population hold a managerial or professional specialty occupation, while the bulk of older women hold technical, sales and administrative support jobs.
Discrimination
Age discrimination continues to be a major concern among older Americans seeking employment.
AARP surveys show nearly one-quarter of middle-aged and older Americans (more than 16 million) suspect they have been subjected to age-related employment discrimination since turning 40.
(Click here for a demographic breakdown of individuals who believe they were discriminated against.)
For purposes of the study, age discrimination was defined as one or more of the following job-related actions: not hired for job; passed up for raise or promotion; denied access to training; or laid off, fired or forced out a job. Employees also were considered to have been discriminated against if they were forced to retire before they were ready or received unwelcome comments about their age.
The majority of respondents who felt they'd been discriminated against fell into the "not hired" and "laid off, fired, or forced out" categories.
The Age Discrimination in Employment Act of 1967 protects most workers age 40 and older from discrimination in the workplace. According to the Equal Employment Opportunities Commission, the number of age discrimination claims since 1992 have remained steady at about 15,000 a year.
Experts acknowledge some of those suspicions may be merely perceived, but they note the belief itself that age discrimination persists is the primary reason why many seniors start their own businesses.
"There is a highly entrepreneurial tendency among the older generation because people can avoid, or sidestep, the age discrimination issue," Barkley said. "Many start businesses of their own, whether it be selling mail order jams or jellies, or craft items."
For the most part, retirees who launch new businesses generally take on younger partners, who oversee the day-to-day operation of the business.
The AARP, however, cautions seniors that business ventures can be a dangerous proposition.
"We try to tell people who are 55 and older that the older they get the more they have to be cautious and not risk everything you have saved," Loftus said. "Otherwise, it can be a huge financial disaster [if the business goes bust.]"
Likewise, she warns, seniors who embark on a consulting, or independent contracting, career, should be aware of the risks -- especially if they rely on jobs as their sole source of income.
"It's not a steady income," Loftus said.
Do what you love
Barkely said the seniors who are happiest -- at least among her clientele -- are those that establish clear goals for their future. Some, who just want a little extra income, find part-time jobs they enjoy, but pay small wages. Others start their own business.
Those that don't need the money tend to focus on volunteer jobs, such as political campaigns and teaching.
"I see quite a number of older adults become involved in Habitat for Humanity and education endeavors, where they maybe teach at a local community college," Barkley said. "I think there is great desire on the part of both men and women, in their older stage of life, to give back."
Barkley said it's never too early to begin mapping out your retirement goals. First determine your wants and needs and then begin looking into ways to meet those goals.
After all, she said, your Golden Years can and should be a productive and fulfilling part of your life.
"We all need to have something that makes us want to get up in the morning for," Barkley said. "The golf game alone isn't enough for most people." 
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