The Biggest Loser: Low Interest Rates Crush Retirees

When Fed Chief Ben Bernanke said he would hold short-term interest rates near zero for at least two more years, the stock market whooped it up — at least for a day. In the middle of the celebration, though, millions of retirees about keeled over.

The prospect of even lower yields on money market funds, bank CDs, Treasury securities and longer-term government and corporate bonds – where many retirees dutifully keep their savings – is crushing news for anyone on a fixed income. Folks who have saved diligently and put their money in safe, short-term investments to secure an income stream for their later years probably deserve a better fate.

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