That glass is not half empty, it is in fact half full. Believe it or not, there is such a thing as “toxic positivity,” which is what happens when we remain positive by ignoring our problems. Denial is never healthy. That’s not necessarily the case in this situation, we can remain positive in the face of a recession if we acknowledge and adapt to the changing times. That said, there may be some light at the end of the tunnel, as the experts at Investopedia.com elaborate on a potential bright side to a recession.
Potential Bight Side
A recession slows economic growth. That’s bad. A slower economy means less job opportunities and generally less revenue for a country’s overall GDP. However, we find ourselves in a unique situation regarding our rate of inflation. Inflation and recession have the polar opposite effect on an economy, and as our inflation has proven to be resilient, a recession may be the thing that finally gets it to slow down.
Prices would fall under a recession, and seniors would still benefit from the COLA benefit until the next adjustment cycle. Seniors can leverage this opportunity to save, save, and save. Additionally, take this time to maintain a level investing routine in their 401(k)s, seniors can be better prepared for when the economy does eventually recover and starts to grow again.
The thing about the glass being half empty or half full is that you still have the same amount in the glass. Being realistic, as opposed to overtly pessimistic or toxically positive, can help your finances survive, and maybe even thrive given the right strategy and opportunity.
Make sure to follow along with the Council for Retirement Security for more recession updates and join in on the Council’s mission to protect the Social Security Trust.