***Half Full or Half Empty

written by Neal Dranoff

In early Spring 2009, I read an on-line article published on MSN.com written by John W. Schoen, entitled “Boomers Face Stark Choices in Bleak Economy.” I felt the piece was so acutely on-point in terms of clarity and my personal situation at the time that I composed a rather lengthy email to Mr. Schoen praising him for his efforts.

Mr. Schoen’s article is part of a series called Reinventing America. While I’ve provided you a link to his piece, I’ll list the salient points in broad brushstrokes for you:

1. The collapse of the financial, housing, and job markets is causing the American Dream to disappear and boomers now find themselves in unimaginable, inexplicable straits. Many of us will be working later in life than originally planned at stagnant or decreased compensation levels.

2. In addition to the blow of boomers facing losses in their retirement accounts due to Wall Street’s recent collapse, many are depleting them to meet basic living expenses.

3. Boomers, representing the generation born to post-war families who rejoiced in the “good times that lay ahead,” are experiencing a palpable shift away from similar expectations. Our currently woeful economic climate will last longer than anything we’re used to, forcing many of us to question whether we will ever return to prosperity.

4. Many of us may have already seen our peak earning years surprisingly fade away at a much younger age than ever anticipated.

5. Some job skills are no longer transferrable due to becoming obsolete.

6. Losing our jobs, even under exigent circumstances, has usurped much of our pride and caused people to isolate themselves and not want to reach out for help.

7. Many baby boomers are encountering age discrimination in the course of job-hunting and their experience and advanced skill-sets are not what many cost-conscious employers are seeking.

8. All of this is causing many of us to reinvent ourselves in the pursuit of new careers, and this was not in our original game plan. For many boomers, reinventing oneself is not only difficult, but practically impossible.

9. The financial advice we’ve received during the past couple of decades (investing in the stock market and holding for the long-term, sacrificing to feed your IRA’s and 401 K’s) has come with greater than anticipated risk

10. Anxiety and stress levels have shot through the roof and many of us feel that our upcoming/present “golden years” have become permanently tarnished.

In December 2009 Mr. Schoen wrote another article, “Bleak Job Scene Poses Challenge for Obama.” This article deals with the slight economic recovery coupled with the continuing bleak job outlook that is not likely to dissipate anytime in the near future. I touched on this perplexing phenomenon in a previous post, Calling for George.

Points discussed by Mr. Schoen include:

1. Don’t be fooled by the recent slowing of job losses; any kind of recovery is going to be a long, arduous process…particularly the rehiring of so many displaced workers.

2. The stimulus package is slowly impacting our economy favorably, but lingering questions remain…is it enough or are additional measures by our government needed?/is there much more the government can or should do to stimulate job creation?

3. Unemployment figures are misleading; they do not count discouraged workers (people who have given up looking for a job) or the underemployed. Count these groups and the unemployment figure dramatically rises.

4. The current recession outstrips the previous one in scope.

5. The belief that an increased demand for products and services will give reason for employers to hire is a key impetus behind the extension of unemployment benefits (even though extensions add to our federal debt).

6. Increasing access to credit for small businesses will be a chief component of any recovery, but there is debate over how to best accomplish this, be it through tax cuts or an additional stimulus package.

After reading this article, I once again got in touch with Mr. Schoen. I’m happy to report that Mr. Schoen nicely sent swift replies to both of my emails. I’d like to share some of his thoughts with you.

According to Mr. Schoen, “’Boomers Face Stark Choices…” was one of the toughest stories he’s had to write in 30 years of reporting; in fact a portion of it was autobiographical. Many of the men he spoke to while composing the article had similar feelings to what I had expressed in my reply email, “the deep need to provide for family and a feeling of profound failure when we are no longer able to do so—or at least in a manner we believe we should.” Mr. Schoen calls this our “cave man” DNA.

Mr. Schoen also stated that “I heard from many couples that the experience has brought them closer together, partly out of necessity. But adversity does force you to ask questions you might not otherwise and forces choices you may have been avoiding. Maybe it’s because most couples who have made it this far come to the realization that they’re not in it for the money.”

Regarding the “Bleak Job Scene Poses Challenge…” article, Mr. Schoen wrote to me acknowledging “since our last correspondence, I had heard from hundreds more 50-somethings who report things are getting worse, not better. Some have burned through savings trying to ‘do the right thing’ by paying off an underwater mortgage, only to lose the house after many months/years trying to get a break from their lender. A few I’ve met are on the verge of homelessness and this prospect seems very real to many more.”

Mr. Schoen has found, however, that many of his readers seem to be moving ahead into this new, unexpected phase in their lives with renewed energy. “They have no choice” said Mr. Schoen. “They feel there’s no sense in letting themselves get depressed and bitter.”

He goes on to say that there is also a wider mood amongst his readers of what he calls “recession fatigue.” There is a great desire on everyone’s part to see the glass half full, to acknowledge “things are bad but maintain hope that we’re all through the worst and life will be back to normal in a few months or years.” Unfortunately, this yearning seems to be hampering meaningful solutions to very real, persistent problems. The panic is over, but the long-term damage still requires serious repair.

In the end, echoing Mr. Schoen’s thoughts, no matter what happens, we’re all going to be profoundly changed; hopefully it will be for the better.

-Neal

Tags: boomers, economy, recession, retirement, unemployment