Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDamilola EsebameSat, July 4, 2026 at 7:33 PM GMT+2 5 min readIf you retired in 2023 or 2024, your money market fund delivered yields above 5% on virtually no risk, according to CNBC. Millions of retirees responded by parking record sums in cash, treating short-term instruments as a complete income strategy.That approach worked in a specific rate environment, but the Federal Reserve cut rates from September 2024 through 2025 and has since held its target range at 3.50% to 3.75% through the first half of 2026, leaving income from cash-heavy holdings meaningfully below peak levels.A retiree who collected about $53,000 in annual income on a $1 million cash position at peak rates could see that figure drop below $40,000 by late 2026,