Retirement is often portrayed as a time for relaxation, travel, and hobbies. Some retirees, however, find ways to supplement their income. After all, Americans are more worried about running out of money than dying (63 percent, up from 57 percent in 2022). Inflation, Social Security, and taxes are the reasons for this fear.
Further, according to a study commissioned by the Pew Charitable Trusts last year, vulnerable households are predicted to fall behind their income replacement target by $7,050 per year by 2040. As a result of savings shortfalls, public assistance programs will be stretched, tax revenue will be reduced, and retiree household spending will decline. At the same time, a growing fiscal burden is being transferred to a shrinking population of working-age taxpayers.
