Why do we use the phrase "fixed income" for retirees?

[raccoon]

fixed in·come
noun
an income from a pension or investment that is set at a particular figure and does not vary (as a dividend) or rise with the rate of inflation.

But Social Security, and at least some pensions, get periodic raises. I won’t argue that they keep up with inflation. Because I know they don’t. BTW I am a Social Security recipient myself.

But in my experience, many working people don’t get any raises, so they are essentially on a fixed income unless they can get another job.

[MineralMan]

1. I'm on Social Security. I still work.

Since I'm over the full retirement age, I get the full benefit, regardless of how much I earn. So, my income isn't fixed. For a lot of SS recipients, work is not possible. They have their SS benefits and whatever other pension or other income, but that's it. Their income is fixed, meaning it doesn't change from month to month.

COLA increases don't change that, since they happen just once a year, if there is an increase.

Basically a fixed income is an income that doesn't change and you aren't employed. It doesn't mean "low income," necessarily, though. It just means that it doesn't change.

[dawg day]

2. "Fixed" is good too-

That is, it's not going to go down, and it's not going to go away.

If you have a job and wages, you could lose the job, get your hours cut, get your pay cut.

But with Social Security, you can count on at least $XYZ dollars every month till you die. So it's "fixed" but also in a good way-- it won't go down.

And while the amount might rise with COLA changes, it's still "Fixed" in the sense that it's an amount that is "fixed" by the rules.

I'm kind of looking forward to getting social security. I think after "full retirement age", I can still work and earn money ANd get the monthly payment. (My job doesn't pay well, so I don't think I'll be over the allowed amount.)

There aren't that many benefits to growing older, but this is one!

[alwaysinasnit]

3. Well, if memory serves, SS pensions didn't see many COLA's in the last 10-15 years, and even when

there was a COLA, it was eaten up by increases in Medicare Part B. So, for all intents, retirees' incomes were unchanged.

[Wounded Bear]

4. Well, working people used to get periodic raises, too...

not so much any more.

[beachbum bob]

5. COLA for SS is just about better than nothing and has nothing to do with cost of living

[demosincebirth]

10. What do you think COLA stands for?

[Scruffy1]

13. There are many ways to compute COLA.

This taer I get about $30.00 a month. My internet bill went up that much and my property taxes about $20.00. In general Seniors have different expenses than the general population. They have more medical and prescription costs, on the average, and these are areas with the biggest increases.This argument has been raised by many over the yaers, but has been put one the back burner during Republican control.

[cyclonefence]

6. I've often wondered about that, too

Anyone who is salaried is on a fixed income, fixed by her employer, not the government, but fixed nonetheless. When we were younger, and people would preface refusing to donate to a charity with "I'm on a fixed income," I'd think, "who isn't?"

I guess if you live off investment income, or if you work solely on commission, it's not fixed. But what other kind of income isn't fixed, at least for some given period of time (like between COLA raises for SS, or yearly salary reviews in a regular business)I?

[Kaleva]

7. We are immune to layoffs or switching to higher or lower paying jobs. Our income is "fixed".

[4u2]

8. What is Fixed income

Social Security is not an investment. It is a payment from insurance you have bought from the government. It may be adjusted by government action. It is not fixed income.

A pension is not an investment, it is a deferred benefit from employment. It is subject to being raised or lowered based on a negotiated agreement. It is not fixed income.

A Bond is an investment. It is an investment instrument which you buy that guarantees a certain payment. The price you pay when you buy it may go up or down. The amount it pays you will never change. It is fixed income.

[4u2]

9. A wage is never fixed income

it can change based on many factors. There is nothing fixed about it.

[keithbvadu2]

11. Fixed?

[JHB]

12. IIRC, many (now nearly extinct) private pensions...

...had a fixed annuity, and the steep inflation of the 70s played havoc with them. Periodic adjustments became more common after that, but the name stuck.

Mind you, I many not be recalling correctly.

[Roland99]

14. Rather nit picky, imho

It’s fixed for a year. And it won’t vary much year over year

For all intents and purposes it’s a fixed income

Even with a COLA increase it’s an income fixed to certain standard of living that remain fixed over time

[Hortensis]

15. Wry reality for many, means fixed as inflation raises the cost of living.