Inflation is a major challenge for seniors on fixed incomes

When food prices rise, seniors on fixed incomes pay a heavy price. Seniors living on federal pensions have lost $1,600 in purchasing power, according to Pierre Lynch, the president of the Association québécoise de défense des droits des personnes retraitées et préretraitées. And it’s difficult to predict when those costs could come down, says Associate Professor of Finance Sebastien Betermier. Geopolitical issues like the war in Ukraine are exacerbating the factors causing inflation. “This is what is so hard about the current situation,” Betermier says. "Planning ahead can ease the anxiety that we face, and it becomes a lot more manageable."