programs such as Medicare in the United States, retirees can face premiums, deductibles, prescription costs, dental expenses, vision care, and other out-of-pocket bills.
Someone who is still working may be able to respond to rising costs by working additional hours, changing jobs, or seeking a higher-paying position.
A retired person may not have those options.
This is why policymakers frequently consider age-based deductions, credits, exemptions, or special treatment for certain types of retirement income.
The objective is generally to reduce financial pressure without eliminating the tax system altogether.
