"The recession has eroded older workers’ confidence about retiring comfortably,"  claims a report in the Washington Business Journal.  

Given the fact of 2.6 million layoffs during 2008 alone, it is likely that everyone knows at least one of these jobless persons.  It isn't a stretch to worry, "What if I'm next?"  

The article cited data from a recent survey, reflecting the views of those in the 50 - 64 year old group. 

1)  For the question: "Do you feel you will have enough money to live comfortably 5 years into retirement?" 

• 63% of this age group in 2007 said yes.
  
• 44% of this age group in 2009 said yes.
  

2)  For the question: "Do you feel you will have enough money to live comfortably 15 years into retirement?" 

• 34% of this age group in 2007 said yes.
  
• 18% of this age group in 2009 said yes.

If it took 25 years to build up money in various stock retirement accounts, it took only one year (2008) to lose 24% of that amount. A person in their late 50s and early 60s could easily wonder how long it would take to recover that amount - if ever.  

According to one report, workers 45 and older are less likely to be fired. On the other hand, if they do lose their job, they have a disproportionately more difficult time getting new work. Yes, ageism persists, perhaps even more strongly during times of recession.

It seems evident that this group -the Boomers- have gradually learned that the idea of job security, taught in their youth, is a myth.

However disappointing that may be, faced with job insecurity and huge losses in lifetime retirement accumulations, many Boomers are probably justified to be concerned. Add to that the continuing threat of Social Security insolvency and the way that even small medical emergencies can destroy a person's financial position. Add to that the fact that the average US life expectancy now tops 78 years old.  Add it all up and the retirement planning challenge is evident.

For decades the message has been taught that retirement is a time of freedom to enjoy things postponed by the restrictions of the salaried work-life.  This message has caused Boomers to have higher expectations for a more interesting, fun-filled retirement than recent generations. These expectations, coupled with the current financial crisis and the limited time left for Boomers to recover their losses, is greatly unsettling for this age group.

So what should older workers do? That was a question asked by one writer in a news forum that reported the survey data above.

Many realize they must continue working - "postpone retirement."  In fact, those currently retired are back out looking for work.  "The ranks of the elderly looking for work has swelled more than 120 per cent to more than 1.8 million in the last year," according to another report.  "There are 29 million seniors - those 55 and older - employed or actively looking for work in the United States, which is about 18 per cent of the civilian work force."

Increasingly, it appears that the idea of retirement is also a myth - at least for large numbers of people.

E = Employee.  The mind-set that focuses on security and benefits. The individual who, acting out of fear, seeks certainty.  Security may be even more important than money.  The "E" ideally has a job.

S = Self-Employed.  The mind set that focuses on individuality and creative perfectionism. The individual who responds to fear by trying to "take control of things." Independence may be more important than money.  The "S" finds that their income is limited as they are paid only if and as long as they perform their service (plumbing, lawyering, consulting). The "S" ideally owns a job.

B = Business Owner.  The mind set that focuses on thinking - thinking how to create a system that will be the basis of generating cash. The individual who responds to challenges by hiring people to resolve problems and work the system. The "B" can lead others; he leverages other people's time and money. The "B" ideally owns and leads a business.

I = Investor.  The mind set that finds ways to use money to create more money. The "I" has income without physically doing any work.

Kiyosaki's views are somewhat controversial, but his "Quadrant" reminds us that there is more than one possible response that older workers have as they review how the recession has changed what had been imminent retirement plans.

Even those in their 70s who find themselves short of cash have the same choices. Looking to be employed is not the only choice: self-employment and business ownership are other options.

As always, these choices may be constricted by available cash and time.  It takes time and money to launch a business. There are many businesses that can be launched for very little money, but it may take time before they are profitable. And even more time before the business generates enough cash where it becomes possible to hire people to carry out some, and eventually most, of the work. Or as Kiyosaki might put it, it takes time for an "S" to generate the cash necessary to move to the position of a "B."  To further interpret from Kiyosaki: many self-employed people would rather not own a business anyway; that is they do not want to delegate.

But assuming that a person still has some available cash, and therefore time to grow a business, creating a business is an alternative to seeking a new job.

In facing the need for cash, older people can also benefit from the stimulation that "work" provides. Everyone can benefit from mental challenges, and this is no less true of "seniors." Whether the older person is no longer employed because of being downsized or because they had previously retired, the challenge of learning new things associated with starting a new business can be particularly appealing.

There are a variety of "home businesses" all of which take a time to get going and provide plenty of mental stimulation, particularly when it comes to marketing a product or service.

Low-cost franchises. Examples: home-care, computer services, tutoring. Be very certain that the franchise you select is going to start well in the recession. Buying into a franchise involves a higher average investment cost going this route, thus greater risk.

Contracting services. Examples: Editing, plant maintenance, programming, billing and accounting.

Fee-based services. Examples: Music lessons, pet sitting, tax returns, performances, travel guide and related.

Product-based businesses. Examples: Baked goods, quilts, an invented product, book.

Internet marketing businesses. Examples: writing eBooks, blogging, article writing, affiliate marketing.

Network marketing businesses. Examples are easily found in many industries, including wellness, legal, telecommunications, travel and more. It is very important to realize that network marketers do not "own a business" when they purchase a "start up pack." They are a distributor, often hampered by their selected company from doing any product advertising. As a result, in the promotion of your network marketing MLM home business, it is wise to focus on promoting yourself, not just your network marketing product or opportunity.

Any of these kinds of businesses will keep the average person fully stimulated!

I have been an (E) = I have had a job as a high school teacher for 17 years. I have had a job as a high tech equipment supplier training manager for 8 years.

I have been an (S) = I have been a self-employed training consultant for 16 years, conducting train-the-trainer workshops around the world.

I am 63 and have enjoyed all those things, but have realized that I really need to leverage all of it into a real business.  Learn more here.