Low interest rates may be good for consumers looking to apply for a loan, but they are also sapping many retirees of the nest egg they've spent their life saving.
Older Americans told the Wall Street Journal their savings accounts are a shell of what they once were, primarily because the Federal Reserve has initiated a slate of strategies meant to keep interest rates low. Those initiatives can encourage bank lending and activity from buyers looking for a mortgage, but they also wreak havoc on retirees who depend on their savings account. Those without the safety net of a life insurance policy could be leaving their families at an even higher risk for financial ruin given their weak savings portfolios.
"Americans who have done everything right, have worked hard, saved their money and stayed out of debt are the ones being punished by low interest rates," Richard Fisher, president of the Federal Reserve Bank of Dallas, told the paper. "That state of affairs is not sustainable for a long period of time."
At a time when retirement plans are in a state of flux, a strong life insurance policy can ensure families will have some sort of income source should their primary breadwinner pass away.