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Leslie Yee
RISING inflation is tough for retirees; they do not receive wage increases to cope with higher costs of living. Generous handouts by the government can help retirees mitigate high inflation.
However, some retirees are probably prospering in this inflationary environment. A person who holds S$1 million in Singapore dollar fixed deposits might earn 3.2 per cent per annum today versus 1 per cent per annum some time back. This translates to getting S$22,000 more a year. The higher interest income can cover rising living expenses.
Also, a retiree who collects rental income from a home would benefit from the recent spike in home rentals.
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