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What's Next for Long-Term CEOs?                                     

One in six nonprofit CEOs are age 60 or older. They're part of the massive baby boom cohort that will be moving into their next act over the next two decades. 

We used to call that next act retirement. But for a variety of reasons, retirement is not the choice of many Boomers, especially nonprofit CEOs. Why?

• Americans are living longer, and living in better health for longer.
• The recent financial crisis is forcing some to delay retirement.
• Many love their work and don't want to leave it.

That said, many older nonprofit CEOs do express a desire to move into a next act that allows them more freedom. They would like to pass the baton to a successor, or to take a less demanding role in the organization, but see barriers to such a transition. In our experience, most executive directors need to overcome five barriers to determine "what's next." In this article, we look at these five barriers, and help you understand how to overcome them so you can think clearly about "what's next."

• Barrier Buster #1: Ignore the myths and messages about age
• Barrier Buster #2: Develop a balanced life portfolio
• Barrier Buster #3: Get real about work after 65
• Barrier Buster #4: Prepare your organization
• Barrier Buster #5: Overcome your fear of the unknown

Barrier Buster #1: Ignore the myths and messages about age 

For years we've all been bombarded with messages about what retirement means and that it begins at age 65. But 65 is just a number that got rooted in our imagination when early pension plans were formulated because life expectancy wasn't much above age 65. It got further cemented when Social Security picked up that milestone for the beginning of benefits. Given changes in life expectancy, the reality is that your "65" is not your parents "65," and certainly not your grandparents "65." Someone turning 65 today should be planning for at least another two decades of very active life. (But as they say, individual results may vary.) So, put your planning hat on. You have at least two decades to design if not more. What would you put into them?  

The first step you need to take is to sort through the myths and messages in your mind and toss out the no-longer-relevant ones. (Easier said than done, we know.) Now you're ready to think about the story you want to write: your personal life portfolio, which helps you determine "what's next" for you.

Barrier Buster #2: Develop a balanced life portfolio  

It's been reported that the folks who are happiest in retirement are those that have 1) enough money for a reasonable level of financial security; 2) a circle of friends with whom they have frequent, meaningful contact; 3) relatively good health and a regular fitness regime; and 4) activities that connect them to the world in a significant way.

Dan Corbett, author of Portfolio Life, lays out a life portfolio model that includes five elements:

• vocation/profession/income
• avocation/recreation
• community/humanitarian pursuits
• family/friends
• self-development/spirituality

Corbett notes that as we go through life, different elements of the portfolio naturally receive different priority. For example, we emphasize vocation earlier in our life, family as we begin to have children, and so forth. In his model, retirement is not about cutting ourselves off completely from vocational pursuits. Rather it's another natural rebalancing of priorities.

What does this mean for the nonprofit leader? Executives often tell us they don't know what they would do in retirement. They say that much of their life's meaning is tied up in their work, many of their friends are work-related, and even their avocations are linked to their profession. If you share this barrier, examine your life portfolio and rebalance its five aspects.

Fear about income during retirement is often a specific and substantial barrier. As you assess the income element of your portfolio, analyze the messages that you've received about financial security. Many in the financial services industry say we should have resources sufficient to replace 80 percent of current income, while other sources say 40 to 50 percent is probably closer to reality and more doable for many people. Consult a financial advisor to figure out what number works for you.