Charles Sizemore would love to get back into education, but the economic downturn has made it tough for him to be optimistic about landing a job.

        Joyce Butler's future seems brighter, but the decline in the stock market has made her a bit nervous.

        Like many retirees, Mr. Sizemore and Ms. Butler have been affected by the decline in the stock market and the weakening economy.

        “With my retirement, my income has been split in half, so I'll need to find a part-time job,” said Ms. Butler, a Philip Morris supervisor who retired in July.

        But finding a job may be tough, said Mr. Sizemore, 66.

        “Times are more difficult,” he said. “Frighteningly so, and there doesn't seem to be many options for supplementing income.”

        Welcome to the changed world of the retired, where the livin' ain't so easy these days.

        For many retirees, the economy has cast a cloud over their lifestyles and plans.

        • The decline in the stock market has plundered many nest eggs — money earmarked, perhaps, for extensive travel or winter homes in Florida.

        • To revive the economy, the government has slashed interest rates — bad news for savers who depend on high-yielding certificates of deposit, Treasuries or other investments for income.

        • A tight job market may make it difficult for retirees to go back to work to pick up extra cash.

        It's enough to cause great concern among retirees.

        “The overall gist is that they feel optimistic on the economy and investments, but in the short run, they are frightened,” said Carl Heick, a certified financial planner and partner in Heick, Hester & Associates, a financial advisory branch of American Express Financial Advisers.

        “They're not sure what will happen from another attack of terror, or what kind of war we're involved in,” he said.

        “There's a lot of uncertainty, so they're pruning back their spending habits. They plan to travel less, not going abroad as they planned. Instead of taking three or four trips, they'll take just one or two. It's a combination of the expense and the fear of travel.”

        Besides less travel, Mr. Heick said, “They're holding off building that home in Florida. They're still eating out, but they watch where they go. The restaurant may not be as expensive. They may not order that bottle of wine.”

        As for investments, Mr. Heick said, some retirees have reason to be worried.

        “If the market doesn't come back, people may be forced to liquidate some holdings,” he said.

        In the meantime, he said, some people have been shifting some of their “safe” money back into stocks “to try to preserve the value of the total portfolio.”

        Overall, he said, “The fear will subside in a few months, but the reality of less income will still be there. People are less certain that they will live retirement quite the way they wanted to.”

How retirees are coping

        Ms. Butler, who lives in Louisville, was pushed into retirement when Philip Morris closed its Louisville plant. Her husband still works full time, and is about six years away from retirement.

        Ms. Butler said her lifestyle hasn't been altered drastically, but “it will be hard. I don't go shopping as much, but then, I'm at the stage where I don't require a lot of stuff.

        “I'm a little nervous about my investments now, but I believe it will be all right. ... I'm pretty confident in our country, and I think in the long term everything will work out and we'll be fine.”

        Mr. Sizemore isn't quite that hopeful.

        A former college teacher and counselor, Mr. Sizemore became a student again and got another degree in 1999. But he hasn't been able to get another education job since, and relies mainly on Social Security.

        “I'm down to the bare necessities and catching up on old bills, not making any purchases of any significance,” he said. “It's been across-the-board cutbacks, and unless more retirees are accepted into the work force, I don't see things getting any better.”

        Mr. Sizemore, who works part time as an inventory clerk as part of a job-training program, said, “If possible, I would like to work a few more years in the education system, but I don't see anyone hiring me at my age. I don't know where to go, or who to ask. So I'm left out.”

        Still, he said, “I'm hopeful that something is around the corner.”

        Some retirees are weathering the latest downturn in the stock market fairly well, in part because of planning and some nifty moves.

        Edwin Fox, a stockbroker with Edward Jones, said that among retirees he works with, “most rebalanced their portfolios a few months ago, with less exposure to stocks and more growth and income, and bonds.

        “I don't hear a lot of nervousness. They're concerned, but are staying the course, thinking the economy will recover.”

Advice for retirees

        “The best advice is to be proactive,” said Carl Heick, a certified financial planner and partner in Heick, Hester & Associates, a financial advisory branch of American Express Financial Advisers.

        “Make changes now so you don't get into a trap of not having enough money. Don't sit back and worry. Do something about it,” he said.

        For starters, Mr. Heick recommends assessing one's needs and desires, and formulating a written financial plan that encompasses an asset-allocation model — keeping some money in stocks, but also putting some in accounts that can weather rough times.

        For now, he said, based on needs, time horizons and risk tolerance, short-term money could go into such safe havens as money-market mutual funds or certificates of deposit. For intermediate needs, Mr. Heick prefers short-term government securities that mature in two to five years.

        “If you can draw from 4 percent to 6 percent of your portfolio every year and you have a good asset-allocation plan, you'll have no reason to be fearful going forward,” he said. “A written financial plan will help you sleep better at night and overcome the worry.”

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