People get mad at me when I say I'm hoping for raging inflation... and that I'd love to see 10% CD rates. Actually if truth be known - anyone that is living off their money would love to see a return to these kinds of rates. In retirement you're most likely (key statement - MOST LIKELY) not buying as much "stuff"... Your mortgage is most likely locked in or non-existent. Even if you have one - like Mike pointed out - paying 4% and making double that - is a good thing.
While nobody really actually wants inflation, it's good for retirees. It's just a no brainer for folks to be able to put money into super safe bonds or CD's or Treasuries and make acceptable returns. High return rates actually RAISE the buying power for these folks... but, of course, at the expense of those that are still working and trying to raise families and buy homes and cars etc. That's why inflation and high rates are "bad". But the historic low rates on these same investments have been really bad for the retiree for several years now. This is particularly true for those with the lowest amounts to retire on. The difference between making 7% on 300K and making 3 or 4% on that same amount is just huge to that family.
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