Retirement Income and the Economy
Perils to Elderly From Recession and Inflation
Recession and inflation, the twin horrors of the current economic situation, are stirring new fears among those whose working years are nearing an end. The reason is that their prospect for a reasonably comfortable income in retirement—an expectation nurtured by maturation of the Social Security system, growth of private pension plans, and rising interest on savings—no longer seems quite so secure as in the immediate past. While recent increases in Social Security benefits, partly tied to rises in the Consumer Price Index, help meet the inflation threat, payments to many beneficiaries are still no match for the cost of living.
There are other threats arising out of the overall economic situation: the declining value of ...