April 1, 2012 | Read Time: 2 minutes
An increasing number of people considering second or third careers focused on improving society are concerned about the financial implications of such a move, according to a new study by the think tank Civic Ventures and the MetLife Foundation.
The research shows that as many as 31 million people 44 to 70 years old want to make the transition, but 40 percent do not feel financially secure enough to do so because of the bad economy.
Income Losses
More than half of those interested in such a career move said they expected the transition to be difficult, and of that group, 59 percent expected financial considerations to be the main obstacle.
The report also presented evidence that the money-related fears may be strongly based in reality.
More than two-thirds of the people who have already embarked on careers in social change said they experienced gaps in personal income or suspension of it as they shifted into their new roles. Seventy-nine percent said their income drop lasted six months or more, while 36 percent said it lasted more than two years.
Longer Work Lives
The report found that people interested in switching to careers at nonprofits plan to work longer than the average for people in jobs of any kind, largely to help secure long-term financial security in their old age. The average age of expected retirement for those planning nonprofit careers was 66.2.
Increased Social Security payments are another incentive for postponing retirement, said older people. Sixty-two percent of people surveyed who expressed interest in embarking on social-change careers said they would consider working longer once they learned that delaying their claim to the federal benefit would result in a larger monthly check for life.
The report recommends ways to ease the transition for older people switching careers, such as providing more financial planning, educational assistance, and saving options specifically designed for people who promise to take socially oriented jobs.
The survey was based on data from 1,338 people.
