How the Fed is hurting seniors

From MarketWatch.com:

Seniors, wake up and call Janet Yellen (new Fed chairwoman.)

With an increase in interest rates next year, as Chair Yellen implied in her press conference on Wednesday, she can restore your savings accounts to relevance. The end for low rates might be in sight, and that is good news, despite the initial reaction from markets....

Back in the 1970s or 1980s or 1990s, you might have expected a 5% interest rate or higher on your savings to generate income for your golden years.

Now, it is not even 1%.

Ten years ago, in 2004, the federal funds rate was about 1%. Then, it temporarily climbed to a plateau of about 5.25% between the summers of 2006 and 2007.

However, from the end of 2007 to the beginning of 2009, the rate declined to practically zero and has remained there....

So winners from low rates include those who want to borrow, and those who hold stocks and commodities.

Losers include those who save and lend because they receive less in interest payments from their assets.

This situation disproportionately affects seniors.

According to data from the Census Bureau, seniors ages 65 and over made an average of $3,239 from interest in 2012, and an average of $32,849 in total income.

Thus, just under 10% of their income came from interest.

In contrast, people ages 25 to 64 earned ... (l)ess than 3% of income came from interest for people ages 25 to 64....
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Link:  http://www.marketwatch.com/story/how-the-fed-is-hurting-seniors-2014-03-21