Why do people associate the phrase "fixed income" with "poor" and "retired" ?

Question

Lots of people who make 200k/year are on a fixed income.

And everyone who works for a living is on a fixed income. Workers have harder lives than retirees.

Unless they are self-employed, people who work make a fixed income, do they not?

Answer 1

Fixed income usually refers to an income that's set for life, like social security or an annuity paid out of retirement savings or something like that. A wage from a job is adjustable and generally increases with the cost of living. Fixed incomes usually are not designed to increase with the cost of living and so the longer you are on a fixed income the less your monthly receipts are worth in real dollars. Plus, it takes a huge cash pile to safely generate 200K/year in interest income. A fixed income is usually low because it is essentially the interest from whatever savings you've accumultated.

Answer 2

Fixed income means that the income check is the only money coming in...not their savings, not investments, etc.  People making 200K/yr have money incase, for instance, the water heater breaks, and they need a new one or they break their leg with no insurance and can pull money for medical treatment from the dividends, etc.

Answer 3

people who work make a fixed income, do they not?

Wow, I want your silver spoon life!!  It would be nice to know that I make $200K no matter if I go to work or not!  I believe that Bill Gates would argue with you.  I'm fairly sure that his dividends on his stock investments change, meaning he is not on a fixed income.

I can work 80 hrs a pay period and make $$.  Or I can work 88 hrs a pay period and make a few more $$.  I do not work for myself, so I guess that means my income is not "fixed"  It changes depending on how many hours I work.  

Never mind, silver spoon elitists will never understand what its like to hold an economical enforcing job.

Answer 4

People making 200k per year are not on a fixed income.  They can invest, change jobs, save money, etc.

Fixed income refers to people who are generally retired and have no opportunity to increase their income.  Their income is fixed and unchangeable.  Most of these people while not poor must live frugally.  The executives who have retired with great wealth are not considered "fixed income" people.  It refers to people who cannot better their economic fate any longer.

Answer 5

You have some great points.  

The term fixed income and the term poor should not be linked.  As a matter of fact "poor" is subjective.  In America, poor people usually have cell phones, nice cars, cable television and a roof over their heads.

In other countries, if you eat each day, you are not poor.

Employees are not considered fixed income because of potential to get raises.

They ususally refer to retirement incomes, though they typically get some kind of annual increase, it is typically small nad never outpaces the cost of living.

Answer 6

Because the media often uses that term hand in hand when discussing retirees and low income families who are on public assistance.  

Answer 7

no, persons who work are not considered on a fixed (unchangeable) income.  They always have the opportunity for either raises in their pay or a new job.

I would say that retired persons DO qualify for the term "fixed" income. For some retired persons, they are NOT poor, but the majority of retirees live at a level far below what they made in the work force.

I won't touch the idea of 200k as being a fixed income.