North Michigan News

The economy is worsening in Michigan and across the nation, and retirees on fixed incomes are feeling the pinch worse than most with current predictions saying many will be forced to find another source of income.

On Tuesday, the U.S. Bureau of Labor Statistics (BLS) released Consumer Price Index (CPI) data for the 12 months ending in March, showing an 8.5% all-items annual increase, which is the largest since 1981.

While rising prices are squeezing Americans' household budgets in every state, an additional strain is being placed on an estimated 56 million residents age 65 and older, according to The Washington Post. Many of these seniors rely on fixed incomes and limited savings to cover monthly costs for prolonged and unpredictable periods.

According to the Elder Index, a cost-of-living measure created by the Gerontology Institute at the University of Massachusetts, about half of older people who live alone are struggling to get by on less than $27,000 a year — or the bare minimum for a single renter in good health to cover expenses. 

“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.

Rick Santelli, an editor for CNBC's Business News network, recently said 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."

On average, 16.7% of Michigan's population is 65 or older, according to Consumer Affairs.

According to the BLS, real average hourly earnings decreased 0.8% from February to March, and dropped 2.7%, seasonally adjusted, from March 2021 to March 2022.

With the -2.7% wage inflation for March 2022, the median household income in the state of Michigan has seen a -$1,543 year-over-year loss, bringing the current average household income to $57,144 a year, according to World Population Review.