Want an Encore Career in Retirement? Consider These Steps

An older man smiles as he talks on the phone while sitting at his desk at home.

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In his 2009 book, Drive, Daniel H. Pink introduced a concept that strikes a chord with many approaching the end of their primary careers: encore careers. These second acts are about more than just staying busy — they’re opportunities to find purpose, explore passions and create fulfillment during retirement.

An encore career is a new professional chapter after you retire or step away from your primary profession. Unlike a simple job change within the same industry (e.g., a doctor joining a new practice or a banker moving to a different institution), an encore career represents a significant shift.

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A corporate attorney transitions to managing a food bank
A finance executive dedicates their skills to supporting an animal rescue organization
A retired executive turns a lifelong love of music into a career at a local radio station

What defines an encore career is its sense of novelty, challenge and meaning. It’s about contributing to a cause, exploring a passion or diving into a completely new environment.

Why consider an encore career?

People often pursue encore careers for two key reasons:

Burnout and the need for change. After years in a high-pressure job, you may find yourself feeling burned out. You may feel ready for a new pace but aren’t financially prepared to stop working entirely. An encore career offers the chance to keep earning while stepping into a role that feels more meaningful or balanced.
A desire to stay engaged. For some, financial resources are not the issue — it’s the need to stay active, challenged and connected. If you’ve always wanted to channel your skills or passion into a new endeavor, an encore career could be the perfect way to fulfill that potential.

In a real-life example of someone moving on to an encore career, one client left a long corporate career to pursue a lifelong dream of earning a PhD. Now immersed in academia, they’ve discovered a renewed sense of purpose and excitement in this entirely new chapter of life.

How to approach an encore career

If the idea of an encore career sparks your interest, planning your transition is key. Start with these steps:

1. Ensure your financial stability. Choose a role that covers your expenses without jeopardizing your savings.

2. Prioritize work-life balance. Look for opportunities that allow you to enjoy the non-working parts of life, such as travel, hobbies or family time.

3. Pursue your interests. Explore fields or roles that have always intrigued you, offering the chance to grow and learn.

4. Follow your passion. Seek positions tied to causes or organizations you care deeply about, such as nonprofits, religious groups or entrepreneurial ventures.

5. Embrace flexibility. Select work that fits your lifestyle, allowing you to control your schedule and commitments.

6. Opt for energizing work. An encore career should leave you feeling fulfilled and motivated — not drained — at the end of the week.

7. Challenge yourself mentally. Staying mentally engaged is essential for long-term happiness and health. Pursue work that excites you and keeps you sharp.

The case for encore careers

As lifespans grow longer and retirement stretches 20, 30 or even 40 years, the traditional retirement model is evolving. Encore careers can be a vital part of this extended phase, offering purpose, financial stability and mental stimulation.

They can prevent the boredom and stagnation that sometimes accompany a traditional retirement while helping you maintain a vibrant, connected lifestyle.

Today’s retirees are rewriting the rulebook, asking: How can we make the most of these extra years while staying happy, healthy, and financially secure?

For many, an encore career is the answer — a chance to step into a new chapter filled with purpose and passion.

Stay wealthy, healthy and happy!

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Diversified, LLC does not provide tax advice and should not be relied upon for purposes of filing taxes, estimating tax liabilities or avoiding any tax or penalty imposed by law. The information provided by Diversified, LLC should not be a substitute for consulting a qualified tax advisor, accountant, or other professional concerning the application of tax law or an individual tax situation.

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Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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In March 2010, Andrew Rosen joined Diversified, bringing with him nine years of financial industry experience. As a financial planner, Andrew forges lifelong relationships with clients, coaching them through all stages of life. He has obtained his Series 6, 7 and 63, along with property/casualty and health/life insurance licenses. Andrew consistently delivers high-level, concierge service to all clients.