Impacts for federal government policies on Retirees

[JuanG786846]

I am not seeing any of the benefits of current government policies as a retiree. As a retiree I am seeing my monthly expenses drastically increase, these include: 1) Food, 2) Transportation Expenses, 3) Utilities, and 4) Medical Insurance. 

It would be interesting so see if other AARP members are seeing benefits from current policies?

Inflation impacts and currency devaluation is hurting those like me on fixed incomes.

By the way this is the same feedback I am hearing from family and friends.

[GlennD765352]

Hey Juan, I am a retired government employee and have seen my savings and buying power dwindle over the last 2.5 years. I work part-time and try to stay under the Social Security earnings limit. I have written and published a book and I am writing book #2. I try to buy in bulk and look for deals, but for sure, these past 2.5 years have been a challenge for many people, especially retirees. I am paying roughly $4,000 a year more in fuel costs, and my electric bill has nearly doubled. My car insurance and homeowners insurance has also increased by a 1/3. Hopefully inflation will come down in the near future and give retirees some relief. Good luck and look out for those bargains.  

[Tonster521]

As we all know, inflation is difficult to measure. It may vary from location to location and in rural versus urban communities. I will try to provide a link to information regarding the Consumer Price Index (CPI) https://www.bls.gov/cpi/factsheets/average-prices.htm It appears to me that the Bureau of Labor Statistics (BLS) provides a number (inflation) that reflects price changes over a certain period of time (i.e., monthly, quarterly, annually,etc.). This BLS inflation number which is hovering around 3% is developed using many different items. You may use or not use some of the items. So, in real life, inflation may vary from person to person. For example, I will try to provide a link to the prices of different cuts of beef National Retail Report - Beef comparing prices over a year. The price increases will vary depending on the cut of beef, but most are significantly greater than 3%. So, for folks like JuanG and myself, our food costs have  increased or inflated significantly over the past year without any offsetting price decreases (deflation). Although I have not calculated the costs item by item, food is costing me about 20% to 25% greater than last year. 

[JuanG786846]

Thanks for your well elaborated response, I am experiencing similar numbers in my area. By the way let's include energy prices which are significantly higher driving prices in other areas due to transportation costs.

[Underbat]

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[Therapist4u]

what I hear is hearsay... gossip... word of mouth 📣 

= unfounded information .....

so it is not FACT🙄

FACT while it’s true that some prices on certain products & services have risen or remain too high... i.e. Health insurance.....other prices have gone down... i.e. eggs at Kroger were as high as $5.50 or more last year....I got a dozen at $1.25 today....the economy is always fluctuating

[JuanG786846]

My friend I would love to believe you however you have not provided me with any data concerning your assertions. Can you provide me with some evidence that the same products you bought several years ago cost less today (e.g. Gasoline prices, food prices, insurance costs, etc.)? 

You are providing me as you say "hearsay" and your information is lacking any riggor. I have the bills to prove it along with a statistical sample to corraborate what I am stating.

[DirkB349973]

I know inflation is back down to 3%. The "Morningstar" investment podcast I listen to suggested the Fed would probably have inflation back to its 2% target by next year. They also suggested the Fed would probably start lowering interest rates at that point to encourage the economy. Granted, these are their educated guesses but they are money experts. Are your concerns supported by more than your own observations and the comments of family and friends? 

[Therapist4u]

Hi @DirkB349973

Thank you for an intelligent challenge...to what is basically...hearsay & idle talk!😃

Take care!  ☮️🏖~Allen 🌈⛵

[JuanG786846]

Based on my observations and what I hear from friends and family here are the facts:

1) Monthly grocery bills used to be $270.00, now they are $380.00 for the same items.

2) Gasoline costs went from $2.20/gallon to $4.00/gallon

3) Electric bills went from $120.00/month to $200.00/month

4) Health insurance has gone up 30%

I have compared my numbers with others and they are corraborating what I am experiencing. Based on my numbers I do not understand the basis of the 3% inflation rate you previously mentioned.

[DirkB349973]

None of those numbers correspond with what I am experiencing.

[JuanG786846]

Dirk, I just purchase gasoline today for $3.65/gallon for unleaded, I bought a dozen eggs yesterday for $4.99, organic milk is $4.50 for 1/2 gallon.

Are you regionally located in a large urban area? Prices may differ based on the region of the country.

Thanks

[Therapist4u]

Hi...we agree “Prices may differ based on the region”...yes...Eggs there $4.99 dozen... Like I said, I got a dozen at $1.25.... “organic milk is $4.50 for 1/2 gallon”...that’s a whopping $9/gallon... ...that’s always way more expensive...I got a GALLON of regular milk for $2.99!

But it’s not fair to insinuate the president’s policies are solely at fault for one’s personal choices of region to live in... or in budgeting food purchases...or in the known rise in gas prices...& a little research showed this:

1 reason for the rise in gas prices

a coming fall in gas prices

 along with a coming fall in gas prices! We all want to see that!