Having experienced at least five recessions in their lifetime, retirees know all too well that when the economy is in the doldrums, they need to be more thrifty than ever.

This, despite many of them having cash from pension and Central Provident Fund payouts.

The Sunday Times spoke to 15 retirees, aged between 60 and 78. Most are living on their pensions or savings which they have carefully squirrelled away. Their savings range from $50,000 to $600,000.

Already, financial experts have said retirees may suffer badly from the global financial upheaval.

Mr George Magnus, a UBS Investment Bank senior economic adviser, told The Straits Times last week that for recent retirees and those about to retire, 'the destruction of wealth in terms of housing and pension plans is probably going to be very, very painful'.

The elderly who hold part-time jobs may be the first to be laid off in a downturn, he added.

Worries heightened after Associate Professor Tan Khee Giap, a Nanyang Technological University economist, said in a forum last Monday that the recession will likely be a prolonged one and retirees should prepare to rejoin the workforce.

Said retired civil servant Peter Chin, 71: 'I know this recession is going to affect everybody. But right now, I'm not sure how exactly it's going to affect me.'

Some, having lost faith in banks, have even considered withdrawing all their cash from their savings accounts and keeping it at home.

Said retired secretary Mary Lim, 65: 'I really don't trust the banks right now, especially after the Minibonds case. But after much thought, I decided not to keep my money at home, in case I get robbed.'

Still, some financial experts say retirees may end up better off in a recession.

Said Mr Christopher Tan, chief executive of Providend, a private wealth management firm: 'Prices of everyday goods will be cheaper because inflation is expected to ease.

'The recession will be a much better time for retirees who are living off their savings or pensions."

Most retirees do not plan to take the good news for granted. Instead, many are planning to tighten their belts so that their retirement funds can last longer.

Retired teacher Siti Ahmad is confident she will not have any problems adjusting to tough times.

Said the 73-year-old: 'Whenever I tell my grandchildren about how I had to eat tapioca during the war, they laugh and think I'm joking. But it is difficulties like these which toughened the people of my generation.

'So now when I hear there is going to be a recession, I say to myself 'I've been through worse!' because nothing can compare to those times when I went hungry and had only tapioca to eat.

'Now, even during a recession, everyone can still afford to eat beriani.'

This article was first published in The Straits Times on October 26, 2008.