Retirees are feeling the high inflation more than some other groups.
This is because the majority of retirees are living on a fixed income.
Who will see the income boost?
Michigan Governor Gretchen Whitmer has been working on a plan to help ease the financial burden that many retirees are facing. Whitmer proposed repealing the retirement tax to help seniors keep more of their money. Read more about it here.
Estimations have found that cutting the tax would save retirees about $1,000 a year. This plan would also restore deductions for private retirement income. This includes private-sector pensions, withdrawals from individual retirement accounts (IRAs), and a portion of 401(k).
Michigan’s AARP director, Paula D. Cunningham, supports Whitmer’s plan. This tax cut could be especially helpful in this area because Michigan has one of the fastest growing senior populations.