Interest Rates Cuts = Less Income

Every time that the Bank of Canada cuts interest rates it is hailed as a boost to the economy and an attempt to lessen the effects of the recession. While it may be a relief to those with large mortgages and big credit card balances, it just further puts the squeeze on seniors who depend on interest on their savings to supplement their pension incomes. As these rates fall so do seniors' incomes. And at the same time property assessments are going up and so are property tax rates - a double whammy. It certainly doesn't help to spur spending when seniors have to cut back do to declining incomes and rising property taxes.