Facing retirement and looking for a second act? You’re not alone. Many workers at this stage in their careers become consultants to share their decades of experience and deep industry knowledge. You, too, can help others while boosting your post-retirement income and reaping the many health benefits of staying professionally engaged.
“Consulting allows you to stay engaged in your field, share your knowledge, and continue contributing value without the constraints of a full-time job.”
Melisa Liberman, Author and Consulting Coach
Decades spent working in the business world have honed your valuable skills. Perhaps you’re an adept executive-level problem solver who stays cool under pressure, or a hyper-organized project manager with a deep understanding of your industry, its systems and processes. You face retirement, but you’re not ready to disconnect professionally. Maybe you’d just like to earn extra income. If so, a post-retirement career as a consultant may be a great fit. As a consultant, you can stay engaged in your profession, help your clients solve problems, and help yourself financially while boosting your mental health. You’ll also join a growing number of retirees enjoying second careers. “The percentage of Americans 65 and older in the workforce nearly doubled from 11% in 1987 to 19% in 2023, when over 11 million Americans in that age group were working or actively seeking work. And workers age 75 and older are the fastest-growing age group in the workforce, according to Pew Research Center,” writes finance expert Adam Hayes. If you can see yourself as a consultant post-retirement, take these initial steps to establish your second career.
Identify What You Offer Clients
Review the full breadth of your career. Identify special projects, or other significant challenges you met that were major successes and examine why you chose them. List the industry subjects, tools, frameworks or systems you know the most about. Add the qualities you think employers and customers valued most about you. To gain greater depth and clarity about your specialties and strengths, interview your peers, former bosses and clients for their honest perspectives. Use this inventory to help pinpoint your consulting practice’s focus. Remember, it should not only tie into your top strengths and best ways you can deliver for your clients but also must match market demand.
Polish and Update Skills
Be honest with yourself. Did you skimp on professional development as you saw retirement approaching? Clients will expect the solutions you provide to be current, effective and innovative. You may need to update and perhaps broaden your education in the areas you’ve chosen to focus on. Perhaps you need to add new skills and knowledge about your industry. For additional training or certifications, consider those offered by the University of Texas Center for Professional Education. If freelancing is new to you, you’ll also need to learn how to run your own business. For instance, consider which business set-up will be best. Do you want to be a sole proprietor or establish an LLC or another business type? Seek advice from an accountant and an attorney to help with these important decisions. For other freelancing basics, check out 6 Skills You Need for Freelancing Success.
Determine Your Target Market and Rate
Identify your potential consulting clients before you retire. Start with your current network, including the people you’ve already worked with, and don’t forget to consider your current employer. In Flexible Retention Strategies for Older Workers, Heather Tinsley-Fix writes that employers should hire retired employees as consultants on specific projects to leverage their knowledge, experience and network connections. “The number of people who choose to become consultants after retiring has risen in recent years – 37% of independent contractors were 55+ in 2017, up almost 10 percentage points since 2005,” she states. Use your network. If you’re a member of professional organizations, stay active. If you’re not, join up. This will allow you to expand your industry connections and find potential clients as well as stay aware of both routine and emerging challenges facing your field. Perhaps the companies struggling the most with these can benefit from your knowledgeable advice. How much is your help worth? Identify competitor consultants in your chosen field and their going rates. Research your industry and your geographic location, but consider expanding beyond these boundaries for perspective. Pricing yourself competitively as a consultant can be tricky, but don’t undervalue yourself. Expect to earn more per hour than you did working full-time. Remember that you have a decades-long career and specialized knowledge to offer. Ask clients to sign up for a monthly retainer or offer fixed-fee packages to simplify your billing and guarantee a steady income stream.
Balance Your Financial and Personal Needs
Based on your financial needs, consulting in retirement also allows you the freedom to choose how much you work. Make the most of that flexibility with careful management of your client workload. How much do you need (or want) to work? Set boundaries on your free time. Take fewer projects when you’re planning to travel or need extra time to spend with family. A financial planner can help you maintain your work/life balance by considering the bigger picture—the income you may earn from Social Security, retirement benefits and savings—so you can determine what you need to earn from consulting to meet your financial goals. In addition, an accountant can help you understand the tax implications of your consultancy business. Working as a consultant post-retirement can offer many valuable benefits beyond earning extra income and staying connected with your professional network. According to the University of Michigan National Poll on Healthy Aging, older workers strongly believe that continuing to work as they age offers many pluses. “Workers age 65 and older were more likely than workers age 50–64 to strongly agree that work keeps their brain sharp (57% vs. 43%), helps maintain social connections (37% vs. 28%), and helps them stay focused (40% vs. 28%),” the study found. A growing group of retirees is sharing their value as consultants. You could be among them. As retirement approaches, consider your options to reap financial gains, as well as mental health benefits, while you contribute your expertise to help others. Now that’s an encore worth a standing ovation.
Liz Carmack is an award-winning writer, editor and author of two nonfiction books published by Texas A&M University Press. She has worked as a communications professional for almost four decades.
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