Low Interest Rates Making Retirement Harder

Low interest rates may be good for debtors but are bad for retirees and future retirees.

A decade ago,  $1 million in savings could be put in 5% CDs and earn $50,000 per year.  $50,000 was a pretty good annual income in 2003, especially if combined with Social Security, a pension or a small part time job.  

In 2013, the situation is much different.  $1 million in savings can be put in a 1.5% five year CD or a 2% ten year Treasury and earn $15,000 to $20,000 a year.   That's pretty large retirement pay cut, and won't be made up by Social Security, a pension or a small part time job.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial, saving or retirement advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC