[OrangeBlossomBaby]

I remember when minimum wage was $6.55/hour, and gas prices were $4.11/gallon. I was working in an office earning $13.72/hour, which was decent, for an entry-level generic non-management office job. What was even better, was they paid 100% of our health care premiums on a VERY good health care plan with low co-pays, no deductible, and Rx, dental, and eyeglass coverage, we got 3 weeks paid vacation every year, plus 20 sick days per year, plus 3 personal days per year, and we could take our birthday off with pay. If we didn't take all 20 sick days, the balance would carry over for another year, allowing us up to 40 sick days in any given year if needed.

You don't see any of that anymore. They boast about $10 minimum wage here but good luck finding a job that gives you a break during the day, let alone sick time, vacation pay, or paid premiums on health care plans.

Meanwhile on our fixed income, we're managing. We're not thriving, but we weren't thriving before either. In another year I'll start getting social security checks, and that's when I trade in my old 2010 tin can for a newer used car. Maybe I'll get my old car tricked out, heh - it doesn't even have 100k miles on it so maybe I'll go that route instead. Fix the rust marks, give it a nice spray job, add a new stereo system with 6-CD changer, and maybe some soundproofing panels and some way to reduce the road noise.

[davem4616]

I'll respond to the OP's question of what are we doing differently....

We do a better job 'planning' our errands before we jump in the car...this saves a little gas.

We tend to order a few more things online and get free shipping...that saves on gas and usually the price is similar

We canceled a number of trips due to Covid-19, back in 2020, not because of inflation. I have one trip planned this year (in the states, by car, visiting family and attending a school reunion)

Actually Covid-19 more than inflation was the catalyst for us cutting back on spending. We had easily been dropping 30K+ a year on travel.

Since Covid-19 hit we have only traveled once, and that was in the states, by car to visit family

When Covid-19 hit, I began looking at how we might conserve on spending:
- I changed from using credit cards that offered points to cards that offered cash back. I use an Amex card that gives me 6% back at Publix...and a different card that gives me 2% back on everything else. It adds up, as I run just about all our regular expenses through the 2% card and pay the balance off each month on both
- I cancelled a few 'extra' credit cards that we had that we weren't using that had an annual fee

- brought the cell phone bill down...we were paying for more than we were using

- I shopped around for home and auto insurance (apples to apples, & lowered the bill by $300 over what it would have been this year)

- I pay attention to what Publix has on sale and plan the meals around that as much as possible

- I shop at BJ's every other month for those things that I like to buy in bulk, and clip their coupons

- I buy the 'gas cards' from Publix when they offer them

- we don't eat out much...we might eat lunch at a restaurant occasionally... I enjoy cooking

- I am more selective on what we go to see at The Sharon, and The Savannah Center....we used to be at one or the other every week

We shifted the portfolio a little to have more high yield dividend stocks, thinking 4% would be a good hedge against inflation....well, we all know how that's turning out.

[joelfmi]

Originally Posted by retiredguy123

The people hurt most by inflation and low interest rates are those with substantial savings and invested assets. Not only is your purchasing power affected, but your entire portfolio loses value. At least in the 1970's and 1980's, you got a decent return on fixed income investments, like money market accounts and CDs. I hope that interest rates will soon increase to correct this situation. Currently, savers are being severely punished.

Treasury bonds have gone up for 1 year 1.73 % you have to do your home work to find decent interest rates CD's are not very good now

[bp243]

Originally Posted by Michael G.

Inflation is rough on retired seniors on fix income everywhere.
Coping with the high cost of gas, cars, food, and many
other products, what's your plan on fighting inflation?

Do you drive less?
Do you eat out less?
Do you socialize more with friends at home?
Did you cancel travel plans this year?

Just curious on how you're dealing with 2022 so far.

Cheers !

On a positive note, have you checked the value of your house? At least in The Villages inflation has proven to work in our favor. Hope that's true for you.

[Stu from NYC]

Originally Posted by bp243

On a positive note, have you checked the value of your house? At least in The Villages inflation has proven to work in our favor. Hope that's true for you.

Our house does have much more value but since we have no plans to move doesnt do us much good but our kids that would be another story.

[montagnard1969]

I detest the term "seniors on a fixed income". Ask anyone who works for a living if they are on a fixed income or not? Do you think the employee can walk into their employers office and demand a raise to keep up with inflation? Don't think so. Do retirees receive cost of living adjustments to their SSA and pensions? Some do without having to go to their providers and request them.
Yes, inflation affects us all but don't think those working for a living have a choice to increase their wages upon demand to keep up with inflation.
It seems like no one wants to back off on their spending. Industry needs to drive the economy, not the consumer. Bring back overseas jobs so the supply chain is not disrupted again. Reinstate construction of pipelines for oil and natural gas transmission. Close the southern boarder and relieve the taxpayer from paying for all the benefits invaders take advantage of by walking across the southern boarders, which many taxpayers cannot afford on their pay. Quit printing money and giving away money and our next generation's future in this process. If you make a commitment to repay a loan, then repay it. Don't expect "forgiveness" and duck you responsibility to pay. If everyone could do this how would the banks survive? Without banking the economy would collapse. The system isn't perfect, but it must operate efficiently to work. What we have in place is not working efficiently and is detrimental to everyone, not just retirees.

[rustyp]

Originally Posted by bp243

On a positive note, have you checked the value of your house? At least in The Villages inflation has proven to work in our favor. Hope that's true for you.

How is this a positive ? Unless it was investment property and you are selling and not buying another house (because that one has increased by the same percentage) what your feeling is no more than emotion. In fact that increase will cost you money - example homeowners insurance will go up based upon replacement cost.

[Nucky]

Originally Posted by OrangeBlossomBaby

I remember when minimum wage was $6.55/hour, and gas prices were $4.11/gallon. I was working in an office earning $13.72/hour, which was decent, for an entry-level generic non-management office job. What was even better, was they paid 100% of our health care premiums on a VERY good health care plan with low co-pays, no deductible, and Rx, dental, and eyeglass coverage, we got 3 weeks paid vacation every year, plus 20 sick days per year, plus 3 personal days per year, and we could take our birthday off with pay. If we didn't take all 20 sick days, the balance would carry over for another year, allowing us up to 40 sick days in any given year if needed.



You don't see any of that anymore. They boast about $10 minimum wage here but good luck finding a job that gives you a break during the day, let alone sick time, vacation pay, or paid premiums on health care plans.

Meanwhile on our fixed income, we're managing. We're not thriving, but we weren't thriving before either. In another year I'll start getting social security checks, and that's when I trade in my old 2010 tin can for a newer used car. Maybe I'll get my old car tricked out, heh - it doesn't even have 100k miles on it so maybe I'll go that route instead. Fix the rust marks, give it a nice spray job, add a new stereo system with 6-CD changer, and maybe some soundproofing panels and some way to reduce the road noise.

OBB, add your anticipated Social Security Income to your husband's income then go to Healtcare.Gov (Obamacare) and check out your exact coverage today against what it will be with your new S.S. income. Get prepared to trick out what you've got. Sorry to be the bad news guy but this just happened to my best friend in Jorsey. Sad.

Inflation, whatever, we are alive and kicking. I'm good with whatever comes at us. I may be shocked sometimes but what are you gonna do? NOTHING! I did some shopping the other day at Publix and was shocked beyond shocked at some of the prices.

[Pgcacace]

Originally Posted by retiredguy123

The problem is that you can only invest $10K per year in I-Bonds.

If you have a $100K treasury bond earning 2 percent and the inflation rate is 8 percent, you are losing $6K per year without spending any money eating out or travelling.

If you haven’t earned money in your investments, you haven’t lost it. Having a fixed income today is affected by inflation. Fortunately I was living below my means, so inflation is not affecting my lifestyle.

[retiredguy123]

Originally Posted by Pgcacace

If you haven’t earned money in your investments, you haven’t lost it. Having a fixed income today is affected by inflation. Fortunately I was living below my means, so inflation is not affecting my lifestyle.

I was referring to losing $6K per year in purchasing power, based on the higher prices due to inflation. So, if you invested $100K at 2 percent, you would have $102K in a year. But, if you were going to buy two cars for $100K and the price is now $108K, you can no longer afford them. That is what happens when the interest rate is lower than the inflation rate.

In my opinion, saving money should be rewarded, not punished.

[B-flat]

Originally Posted by Spectreron

OP asked "what's your plan?"
I plan to vote!

Great answer!

[Stu from NYC]

Originally Posted by Nucky

Inflation, whatever, we are alive and kicking. I'm good with whatever comes at us. I may be shocked sometimes but what are you gonna do? NOTHING! I did some shopping the other day at Publix and was shocked beyond shocked at some of the prices.

That is why I only buy stuff at Publix that we cannot get elsewhere

[Stu from NYC]

Originally Posted by montagnard1969

I detest the term "seniors on a fixed income". Ask anyone who works for a living if they are on a fixed income or not? Do you think the employee can walk into their employers office and demand a raise to keep up with inflation? Don't think so. Do retirees receive cost of living adjustments to their SSA and pensions? Some do without having to go to their providers and request them.
Yes, inflation affects us all but don't think those working for a living have a choice to increase their wages upon demand to keep up with inflation.
It seems like no one wants to back off on their spending. Industry needs to drive the economy, not the consumer. Bring back overseas jobs so the supply chain is not disrupted again. Reinstate construction of pipelines for oil and natural gas transmission. Close the southern boarder and relieve the taxpayer from paying for all the benefits invaders take advantage of by walking across the southern boarders, which many taxpayers cannot afford on their pay. Quit printing money and giving away money and our next generation's future in this process. If you make a commitment to repay a loan, then repay it. Don't expect "forgiveness" and duck you responsibility to pay. If everyone could do this how would the banks survive? Without banking the economy would collapse. The system isn't perfect, but it must operate efficiently to work. What we have in place is not working efficiently and is detrimental to everyone, not just retirees.

Very well said

[dougawhite]

Our financial planner says we have to die one year sooner now to allow for losses due to inflation...

[mermaids]

One way to save money. Do not shop at Appliance Direct!!
They are not a reputable company and unfortunately we found that out the hard way!!