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Hi Robyn
Whats going on right now is inflation, and this can be devastating to retirees on fixed income. For example, those households who are getting a private company pension (such as pensions offered by General Mills or Coca-Cola), these pensions are fixed and do not grow with inflation. The same holds for straight Single Premium Immediate Annuities that many retirees will buy with their retirement savings when they retire. The rate of inflation is in effect a negative earning on the fixed income. For example, if you retire at 65 with a $3,000/month private pension, at age 75 the purchasing power of that $3,000 will have dropped to $2,451 at an average annual inflation rate of 2%. Increase that to an inflation rate of 4% and the purchasing power drops to $1,994. That's over 1/3 of the pension lost to inflation. Fortunately, Social Security and all the Government pensions I've ever seen do have an annual inflation adjuster, but for gov pensions such as state pensions, how the COLA is figured can vary.

Working part time in retirement is an attraction to many. It may be due to the need for household income, but I think many do it to avoid boredom and to do something they like to do. Many of the customer assisters at our local Home Depot I notice are of retirement age, and they seem to like what they do and sometimes get very chatty.

BruceM
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