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50 years old plus and broke

Retirement savings dissolve during years that should bring workers' peak earnings.

By Jeff Ostrowski Palm Beach Post Staff Write
In normal economic times, Tom Gaskin would be in his peak earning years, socking away money for retirement and paying down his mortgage.

But amid Florida's weakest labor market in decades, the 52-year-old West Palm Beach man has been out of work for more than two years.

After losing his job as a truck driver in late 2008, Gaskin earned a security license and has applied unsuccessfully for countless positions. He exhausted his unemployment benefits and has relied on the generosity of his five adult children.

"All of them kind of kick in to help me out," Gaskin said. "At this age, you want to be in a position where you can help your children."

Things haven't worked out that way for Gaskin or for millions of middle-age Americans who are seeking jobs.

Workers in their 40s and 50s typically count on these years to make good money, pay off debts and fatten up their 401(k) accounts.

But with so few employers hiring, middle-age job seekers have been forced to take on debt and dip into their savings.

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Gricel Cruz of West Palm Beach was 59 when she lost her job as a manager at Macy's. Now 61, she has found work, but only after a two-year search depleted her savings.

"I had to use my retirement savings to survive, and I have very little left," Cruz said. "I'm going to have to keep working."

While the job market has been frustrating for workers of all ages, mid-career workers have fewer safety nets. Younger workers can move in with their parents. Older job seekers can tap into their Individual Retirement Accounts and 401(k) plans without tax penalties at age 59ȀA1/2, and they can begin collecting Social Security at 62.

But middle-age workers typically are burdened with more financial obligations and less flexible lifestyles.

"Going back home to crash when you're 25 isn't quite the same as when you're 45 and you've got kids and a dog," said Sean Snaith, an economist at the University of Central Florida.

Another source of frustration for mid-career workers: There's a shortage of high-paying jobs, so laid-off workers in their 40s and 50s are unlikely to land positions that pay as much as they made previously. And there's no shortage of competition for entry-level jobs.

"You might be competing with somebody who's 10 or 20 years younger than you, who might have skills that are more up to date than you in some cases, and who's willing to work for less," Snaith said.

Middle-age workers say employers frequently say they're overqualified for entry-level jobs. One 47-year-old job seeker who asked not to be named said employers seem to ignore the successes on her résumé.

"It's almost like they want somebody in their early 20s who they can slap around," she said.

Even so, middle-age workers are faring better than most, so it's difficult to say they face age discrimination. The unemployment rate for 45- to 54-year-old workers was 7.3 percent in February, well below the national average of 8.9 percent.

By contrast, the jobless rate was 15.4 percent for 20- to 24-year olds and 9.4 percent for 25- to 34-year-olds.

Some mid-career workers are starting over. After John Schneider, 46, lost his television advertising sales job, he enrolled in Palm Beach State College's biotech program. He's still looking for a job that will use his new skills.

"It's been a pretty tough environment," Schneider said. "Biotech can be dicey even in the best of times."

The Greenacres man is surviving on his wife's paycheck, and the couple are expecting twins.

Simon McKay of Boynton Beach completed an MBA in 2009, but except for some consulting work and occasional temporary positions, he has been unemployed. He is eager to launch his career.

"I would like to be in my career, doing my thing," McKay said. "At 44, I'm not young anymore. Time is not on my side."

But McKay takes solace in the fact that the job market is tough for everyone. Florida's unemployment rate was 11.9 percent in January, and employers have proven reluctant to hire until they're certain the economy has recovered.

"None of that's my fault," McKay said. "I know that I've worked very hard."

Workers who pursue new careers in their 40s acknowledge that the change can be disconcerting. After running a business in his native Jamaica, Sean Duhaney, 43, is working on a nursing degree at MedVance Institute in Palm Springs.

"It was hard for me to adjust to being in a classroom with 18-year-olds," said Duhaney, a father of three who lives in Royal Palm Beach.

Getting a late start on a new career gives him less time to earn money and make contacts, but Duhaney looks at the bright side.

"I think that's an advantage," he said. "I'm a little bit older. I know what being on time means. I know what discipline means."

Tom Gaskin, meanwhile, keeps applying for jobs, and he stays busy by volunteering for an AIDS-awareness charity.

"A lot of people are getting pretty desperate, because they don't know what else to do," Gaskin said. "I love to earn my way."