3 ms·
Savers get higher income from interest, so less likely to spend savings and instead spend interest income.
by landemva 3y ago
Savers get higher income from interest, so less likely to spend savings and instead spend interest income.
- ghaff 3y agoFor someone near retirement who owns their home, inflation somewhat offsets interest income but they're probably not spending a huge amount in general--and higher interest rates mean they can have pretty low-risk investments (which they want a fair bit of at that point) returning 5% or so at the moment.