Low interest rates reduce savings income but boost asset values for homeowners

Steps:

• Low interest rates decrease returns on savings and fixed-income investments, reducing income for those reliant on them.
• Rising house prices from economic growth increase the value of owned property, boosting wealth for homeowners.
• Retirees often depend on interest-based income without employment earnings, so their income falls while house-owning retirees gain wealth.
• Compare groups: only retired homeowners fit both a clear income drop and wealth rise.

Why B is correct:

• Retirees typically live on fixed interest income, which falls due to low rates (per basic interest rate definition: income = principal × rate), while their owned homes appreciate in value.

Why the others are wrong:

• A: Renters lack home wealth gains and may face rising rents, but no clear income fall from rates.
• C: Young buyers benefit from low mortgage rates, easing income pressure despite high prices.
• D: No home ownership means no wealth increase; living with parents likely preserves or grows income.

Final answer: B