Elon Musk's hunt for ‘vampires' collecting Social Security is misguided, experts say — how to save your own retirement

Social Security, vampires and passive income

Musk’s vampire hunt isn’t just for fun — he’s on a mission to expose wasteful government spending. And if there’s one program facing financial strain, it’s Social Security.

According to the program’s annual trustees report, the combined trust funds will be able to pay 100% of scheduled benefits until 2035. After that, the funds’ reserves will be depleted, and continuing program income will only be sufficient to cover 83% of scheduled benefits.

If you’re working, you can rely on a paycheck. If you’re retired, Social Security is supposed to provide a safety net — but is it enough? As of December 2024, the average monthly benefit for retired workers was $1,975.34, which may not be sufficient to cover essential expenses for many seniors. Since almost 60% of retirees consider Social Security a major source of income, per one survey, future cuts to benefits could seriously harm their financial wellbeing.

With these challenges in mind, finding additional sources of income — especially passive income — can be crucial for financial stability in retirement.

Below are two options to consider to earn passive income, but keep in mind that experts advise maintaining a diversified portfolio, including many asset types like stocks and bonds, with an asset allocation that suits your investment horizon and risk tolerance. Speaking to a financial adviser can help you plan your investing to fit your own financial goals.

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Collect passive income through real estate

Real estate has long been touted as a popular way to generate passive income. The process goes something like this: You borrow money from a bank, buy a property, and the tenant pays off your mortgage and then some. Once you accumulate more equity, you repeat the process, buy more properties, scale up … and boom! You are a real estate mogul.

But the reality is different.

If you want to be a landlord, you need to find reliable tenants, collect rent, and handle maintenance and repair requests (out of your own pocket) — and that’s if you can save enough for a downpayment and get a mortgage to buy the property in the first place.

The good news? These days, you don’t need to buy a property outright to reap the benefits of real estate investing. Real estate investment trusts (REITs) and exchange-traded funds that hold them are a great avenue for those looking to gain exposure to this asset class.

Crowdfunding platforms like First National Realty Partners (FNRP) allow accredited investors to own shares in institutional-quality, grocery-anchored properties without the hassle of finding and managing deals themselves — with a minimum investment of $50,000.

FNRP properties are leased to national brands like Whole Foods, Kroger, and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, investors can enjoy the potential to collect stable, grocery store-anchored income every quarter, without worrying about tenant costs cutting into the bottom line.

However, owning a share of a project or property this way is risky — for instance, you could receive no returns and these assets are often illiquid. Figure out whether you can afford to take such risks, especially if you are retired or close to retirement, and speak to a financial adviser before taking the plunge.

Earn passive income with high-yield savings accounts

High-yield savings accounts offer a low-risk way to generate passive income while keeping your funds accessible. These accounts typically offer much higher interest rates than traditional savings accounts, allowing your money to grow without needing to lock it away in long-term investments. This option is ideal for those who want a secure, liquid source of passive income with minimal effort or risk.

These days, some banks and financial institutions are offering high-yield savings accounts that pay up to 4.5%. Check out our compiled list to compare options and find the best fit for you.

In the U.S., most savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This insurance provides protection to depositors in the event that the bank fails, ensuring that their funds are safe and accessible.