[righthand]

Depends on what you mean by retired. In the traditional sense you’re correct, retired people don’t have income. In the legal sense retirement just means the person is of age to collect benefits. But there is also the question of type of income.

If a retired person owns property and sells it, that is income subject to capital gains tax.

If a person is retired but still owns the business or is even still a board member, they’re still working in a sense and gaining shares.

There are plenty of “retired” people who are “working” and have income.

[ghaff]

Or at least not much income. But they still probably have dividends/interest. May well have annuities of various kinds. Probably not much W-2 income but probably some material cash-flow, especially if they have a vacation home.