Retirees on a fixed income are being tasked with a difficult decision to return to work as inflation continues to soar. | Unsplash/Matt Bennett
Retirees on a fixed income are being tasked with a difficult decision to return to work as inflation continues to soar. | Unsplash/Matt Bennett
As the economy continues to tumble, retirees living off a fixed income are returning to the workforce as the recent inflation numbers hit 8.5%.
The Washington Post reports that Americans across the nation are reeling from inflation with roughly 56 million people 65 and older at risk of being financially phased out of their current living situation.
A cost-of-living ratio established by the Gerontology Institute at Boston's University of Massachusetts named the Elder Index states that older people who live alone are having a hard time making ends meet at roughly $27,000 annually, which is considered the lowest salary that one renter needs in order to pay for health costs.
“Any small change in circumstance — rising prices, a medical emergency — can throw an older person’s budget completely out of whack,” Jan Mutchler, director of the institute, told The Washington Post.
Pennsylvania's citizens who are 65 or older account for approximately 4.5% of the entire population, according to Consumer Affairs.
The Bureau of Labor Statistics (BLS) latest Consumer Price Index statistics for the past year show an 8.5% increase on all items, accounting for the biggest rise in 40 years.
Rick Santelli, an editor for CNBC's Business News network, emphasized on April 1 that inflation is hitting retirees right in the wallet: "Are the retirees going to un-retire? This is going to answer it, and the answer is yes."
According to the BLS, from February to March, the real average hourly dropped 0.8% and decreased by 2.7% year-over-year.
World Population Review reported a -2.7% wage last month with the average Pennsylvania household seeing a -$1,667 annual loss, accounting for a median household income of $61,744.
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