This is a valid question that begs for an answer. Traditionally when lending rates rise so then does savings rates. However it seems banks are still not interested in paying any significant interest rate on savings accounts. Sure some 6 month CDs are now paying about 1.75% but compared to mortgage rates in the mid to high 7s it seems savings rates are not keeping pace.
Retirees typically have incomes fixed to a pension schedule or 401k withdrawal schedule. Increases are limited and large increases in inflation will typically outpace any COLA adjustments on a pension or start draining the values on 401k balances at an unsustainable pace.
The economy is simply not hot enough to justify these steep inflationary conditions and the shortage of fuel is purely a political mechanism rather than an actual shortage. But oddly the savings rates are not increasing in pace with lending rates and that leaves seniors and fixed income people in a bad situation.
Retirees should reach out to local elected officials in the house of representatives and your US senator about relaxing limits of US oil production which will absolutely reduce the cost of goods in nearly every sector. Transportation costs are a primary driver in this inflationary cycle.
Let your elected reps know how you feel and maybe some meaningful policy action will start to balance the inequity in this economy.
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