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Marizza181 [45]
4 years ago
15

Why are older people on fixed-income pensions hurt by unanticipated inflation?

Social Studies
1 answer:
valentina_108 [34]4 years ago
5 0
<h2>The older people on fixed-income pensions gets hurt by unanticipated inflation as there is an inverse relationship between interest rates and fixed-income pensions.</h2>

Explanation:

Inflation rate plays a significant role on the financial lives of old Americans with fixed-income pensions. Inflation occurs when unemployment rate decreases and prices of goods, real estate, and commodities creep higher.

According to 2010 research, Old citizens of America spends three times than a working adult and five times that of children, averagely $18,424 annually.

Healthcare, housing, travel, and supporting children also influence how much seniors spend. Unanticipated inflation affects the purchasing power.

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