XPost: talk.politics.guns, alt.politics.homosexuality, alt.california
XPost: alt.politics.usa

In article <t1t9ul$38m2f$[email protected]>
<[email protected]> wrote:

12% of adults rely solely on Social Security income

Rising prices are squeezing household budgets across the
country, but the hottest inflation in four decades has been
particularly burdensome for older Americans.

That's because many of country's 56 million residents age 65 and
up are relying on a fixed income and limited savings � and need
to maintain their same level of purchasing power to cover
monthly expenses for a prolonged period of time, according to
Mary Johnson, a Social Security analyst for the Senior Citizens
League.

Half of older adults who live alone did not have enough money
before the pandemic began to cover basic needs, according to the
Elder Index, a cost-of-living measure created by the Gerontology
Institute at the University of Massachusetts at Boston. The
rapid rise in inflation is further weighing on those individuals.

Prices soared 8.5% in March from the previous year, the Labor
Department said last week, the fastest pace since December 1981.
That increase extends to key staples that have skyrocketed in
price over the past year like food (8.8%), gasoline (48%),
electricity (13.5%) and rent (5.1%).

"If [older people] have any retirement savings whatsoever,
inflation can dramatically lower what�s in their savings
account," Johnson told FOX Business.

There are two reasons that higher consumer prices are eating
away at older Americans' nest eggs: First, retirees have to draw
out more money in order to cover rising costs. On top of that,
individuals with any sort of fixed income investment, like bonds
or CDs, tend to see lower returns because higher inflation is
typically accompanied by higher interest rates.

"Those are supposed to be �relatively safer investments,'"
Johnson said. "But the real danger is inflation can really eat
into those returns from those types of investments. The problem
with a low-interest rate environment, and the problem with the
inflationary environment, is you need to take more out of them.
It�s sort of a lose-lose."

There are about 12% of older adults who live solely on Social
Security, which pays an average of $1,657 per month, a 5.9%
increase from the previous year. But soaring inflation has
already eroded the entirety of the increase, according to
calculations by the Senior Citizens League.

At the end of April, the total shortfall for an average benefit
was $162.60.

Roughly 9.5% of people over the age of 65 live below the federal
poverty line, compared with 8.8% of younger adults, according to
one measure by the Census Bureau. A single person is considered
poor in the U.S. if they make less than $12,500 per year.

A recent study conducted by Allianz Life Insurance Company of
North America showed that just 40% of retirees believe their
income is keeping pace with inflation. About half of respondents
said they had a plan to address the rising cost of living.

"Regardless of whether they are retired or still in the
workforce, all Americans are challenged by inflation right now
and need to develop strategies that ensure their income keeps up
with rising costs," said Kelly LaVigne, the vice president of
consumer insights at Allianz Life. "While changes to spending
habits can help in the short term, it�s important that people
take measured steps, such as adding a source of guaranteed
income that can help to protect their finances without
sacrificing retirement security."

https://www.foxbusiness.com/money/soaring-inflation-eating-away- at-americans-retirement-income

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)