Each and every person is effected by a severe economic recession like the one we are currently experiencing, but not everyone is effected in the same types of ways. Retirees are a group that are hurt quite badly by a recession for several reasons. Retirees count on their retirement funds to fund a large portion of their income, and depending on exactly what type of assets they have in those retirement plans they may be down a great deal from their levels of just a year or two ago.

Retirees are also hurt by the effect on the health care industry on state by state basis. Many state’s are currently running huge budget deficits, which is forcing them to make many cuts, which could include some of the retiree’s health insurance for their family members. This is something that is unlikely for most, but its certainly plausible. Dwindling health benefits is the last thing retirees can afford as they try to make every last penny work hard for them. Need another negative effect of the recession on retirees? There is one final big one, the fact that interest rates are now at zero and money market and certificate of deposits aren’t earning hardly anything. This is very important to retirees, because they frequently use these as options for growing their retirement cash, but it’s hardly an attractive option right now.

The bottom line is that retirees are pinched quite badly by the recession. Many programs that retirees rely on so frequently will be questioned and possibly cut from the budget because of the poor standing of both the federal and state budgets. Retirees need to make every effort to recession proof their retirement portfolio and see a registered retirement planner during these times. It would be prudent to delay any large purchases and find any way possible to save a few bucks here and there. Desperate times call for desperate measures, and that is exactly where we are for many retirees.