Laid off at 50: How some bridge the retirement gap

Minna Vallentine never expected to change careers in her 50s. But when her software firm downsized in 2003, Ms. Vallentine lost her executive position. Despite decades of marketing experience, she couldn't find an appealing position in her field. Finally, encouraged by a vocational coach, she decided to follow her dream and open a business to teach English to immigrants. "I've gone from a six- figure job to barely paying the mortgage every month," says Vallentine, of Mountain View, Calif.

This kind of dramatic midlife shift is becoming more common - and necessary. As employers reduce the ranks of mature workers, euphemisms such as golden handshake, early retirement, buyout, and "early out" mask a sobering reality: Most laid-off workers over 50 cannot afford to retire and yet search unsuccessfully for jobs.

"What you find pretty universally is, for the person over 50 who loses a job, whether it's an executive or a factory-floor worker, their new job is not as good as [the one] they used to have," says Carrie Leana, a professor of management at the University of Pittsburgh who studies job loss.

Some turn to self-employment; others take low-wage jobs to pay the bills until they can collect Social Security and pensions.

Claudine Jones of Dallas, a former customer-service manager, faced her first layoff three months before turning 50, when her employer went bankrupt in 2001. She had to hire a lawyer to get more than the two weeks of severance pay the company offered. She also sold her house in an upscale neighborhood and moved to a more modest address. A subsequent technology job paid much less and lasted only a year.

After five months of unemployment, Ms. Jones accepted a job two weeks ago with a franchise tax service at $8 an hour. She is testing the waters as she considers opening her own tax office next year.

For some laid-off employees, pride is a stumbling block. "Older workers often say, 'I've had a great title, my work is good, and therefore I shouldn't have to take something lesser,' " says Fred Nothnagel, director of WIND, a networking group for out-of-work professionals in Massachusetts.

One former IT manager in the group, Jim Morris, took a job at Staples two years ago after searching unsuccessfully in his field. He has been promoted to copy-center supervisor.

"You've got to do what you need to do," says Mr. Morris of Woburn, Mass. "They give me benefits, and it's a nice work environment with nice people. I just need more money. I don't need a six-figure job, but I need enough to stop the savings bleed." His net pay barely covers his mortgage and condo fee, he says.

Those most successful at transitioning to something new are often the ones who "turn their focus from their past and let go of what they have done and the companies they have worked for," Mr. Nothnagel says. "You need to become open to the possibilities of what is out there. If a person turns that corner, some of them get really energized."

That describes Vallentine. "It dawned on me, when people would say, 'If money were no object, what would you do if you could do anything?' I would reply, 'Teach people to read,' " she recalls.

To pay her bills while she starts her business, The Reading Doctor, she teaches English to Asians and Hispanics through school systems. She trims expenses by wearing simpler clothes, eating out less often, forgoing shopping, and enjoying free activities.

"I wouldn't be honest if I said the money doesn't bother me," Vallentine says, but she adds that she finds her new work deeply satisfying.

As life spans and working lives lengthen, Craig Nathanson, a vocational coach in Danville, Calif., encourages those in midlife to find ways to combine their interests with their work. "People who can visualize what their perfect vocational day would be like are those who can move toward it," he says.

For job-seekers who must postpone such idealism because they need a paycheck, fast, workplace experts offer other ideas.

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