Encore Career

DEFINITION of 'Encore Career'

A second vocation in the second half of one's life. An encore career seeks to combine a sense of purpose with public-service passion and a paycheck for people in their 50s and 60s, according to Encore.org, a nonprofit organization founded by social entrepreneur Marc Freedman. While encore careers can be found in any sector, they tend to be clustered in five areas – healthcare, the environment, education, government and the nonprofit sector. The term "encore career" is believed to have been popularized by Freedman.

BREAKING DOWN 'Encore Career'

The increase in encore careers is being driven by a potent combination of factors: a massive demographic shift (that will result in the number of Americans over the age of 55 exceeding 100 million by 2030); longer life expectancies; and an increased desire to "give back" to the community.
 
The trend toward encore careers may seem like a win-win all around. Experienced and educated older individuals can add to economic activity by making a meaningful contribution to society; they can also stay gainfully employed well beyond the normal retirement age. The problem is that encore careers are paid jobs, not volunteer positions. Many people in encore careers may be already receiving handsome pensions from their previous jobs. The logical question, then, is whether they need additional income at a time when unemployment is much higher than normal, especially for fresh graduates who are just entering the work force (many with a sizeable student debt loads). Encore careerists may be "crowding out" younger people that may be as qualified as them, but without the same depth of work experience.

RELATED TERMS
  1. Recareering

    A late-in-life career change. Recareering is not just a job change, ...
  2. Forced Retirement

    The involuntary ending of one's career because of a layoff, health ...
  3. Vocational Degree

    An educational certificate that specifically prepares an individual ...
  4. Certified Senior Consultant - CSC

    A certification indicating knowledge in key issues facing aging ...
  5. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans – ...
  6. Normal Retirement Age - NRA

    The age at which people can receive full benefits upon leaving ...
Related Articles
  1. Retirement

    Have You Considered A Mid-Life Career Change?

    The notion of retirement needs to be reinvented, because times have changed. The new model of living expectancy has changed from age 65 to 85 or 100 years.
  2. Retirement

    Planning Your Second Career

    A second career can provide opportunities whether you are worried about outliving your retirement savings, or you want to stay productive and do something meaningful later in life.
  3. Retirement

    5 Top Career Changes for People 65 and Older

    Interested in a new career path but not sure where to start? Here are five top choices.
  4. Personal Finance

    5 Career-Changing Mistakes

    Changing careers can help you achieve life goals, but making a quick change for the wrong reasons can lead to disappointment.
  5. Financial Advisors

    Just Retired? No Better Time for a Second Career

    After working for decades and reaching retirement age, what's next? A second career, of course. Here's why and how.
  6. Professionals

    7 Steps To Choosing A Second Career

    Whether you tackle a second career at age 25 or 55, there is always opportunity to "trade up" to something you can enjoy for the rest of your working life.
  7. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  8. Personal Finance

    How Much Should You Invest in Your Career Growth?

    If you want to advance your career and earn more money, then it is time to invest in yourself and your skills.
  9. Personal Finance

    Reasons Not To Change Careers In 2013

    Now might not be the best time to change careers. Find out why.
  10. Professionals

    10 Rewarding Career Choices

    Not all careers are ho-hum. These 10 have a very high percentage of happy employees.
RELATED FAQS
  1. How do you protect yourself against sudden unemployment?

    Learn the steps you can take to protect yourself from unexpected job loss and how you can turn a potentially desperate time ... Read Answer >>
  2. What advice would you give a young person about to begin their career as a financial ...

    As the title says, I am about to begin my career as an advisor and was wondering if you had any advice for me? If you could ... Read Answer >>
  3. What licenses and certifications do you need for a career in portfolio management?

    See what it normally takes to begin a career in investment portfolio management, including education, experience, licenses ... Read Answer >>
  4. How do I get started with a career in asset management?

    Find out how to get stated with a career in asset management whether you are still an undergraduate student or making a career ... Read Answer >>
  5. What's the average salary of someone with a finance major?

    Learn how much you can earn with a finance degree. Decide if a business career or finance career is more appealing for you ... Read Answer >>
  6. What should you do when you're five years from retiring?

    One of the first steps you should take at this stage is avoid the pitfall many pre-retirees experienced in 2008 – overexposure ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center