I have a feeling many retiree's were able to sit back and get over 5% on money market and CD's last year.  It was easy.  That 5% is probably a good feeling if you have a chunk of cash in your IRA or 401k retirement account. 

2008 is a different story-you've seen our Friday Market Updates here and all the stock index's are negative so far.  Bonds, CD, and money markets are a haven but the yields are hovering around 3.5% and the Fed may cut interest rates again when they meet next Tuesday.  It's got to be difficult as many retiree's have the bulk of their portfolio's in these conservative investments and rely on this for income..

Here's a recap of money market yields from several mutual fund companies: 

Vanguard Prime                    (VMMXX) 3.52%

Fidelity Cash Reserves         (FDRXX) 3.48% 

T. Rowe Prime Reserves       (PRRXX) 3.01% 

Schwab Investor MM              (SW2XX) 3.12%