The Federal Reserve raising interest rates can have several effects on people over 50. For example, those who have savings accounts or certificates of deposit (CDs) may see an increase in their interest income from these accounts as interest rates rise. On the other hand, those with adjustable-rate mortgages or other variable-rate loans may see an increase in their interest payments. Additionally, the stock market may fluctuate in response to the interest rate increase, which can affect retirement portfolios and investments.
Experts recommend that individuals over 50 review their financial plans regularly to ensure they are prepared for potential changes caused by interest rate hikes. For example, those with variable-rate loans may consider refinancing to a fixed-rate loan to lock in an interest rate before it increases. Additionally, speaking with a financial advisor can help individuals develop a plan to navigate potential market fluctuations and adjust their investments accordingly.
Overall, while the effects of a Federal Reserve interest rate hike can vary depending on individual circumstances, it is essential for people over 50 to stay informed and take proactive steps to protect their financial well-being.
What a Federal Reserve Interest Rate Hike Might Mean for Older Americans – Aging.com
What Higher Interest Rates Mean for Seniors – The Balance