Peri-Retirement

AAA

DEFINITION of 'Peri-Retirement'

A term for the period of time leading up to actual retirement. Peri-retirement is marked by the planning phase of retirement, in which an individual determines his or her financial readiness. Individuals in this stage leading up to retirement are most likely to be in their late 30s, 40s or 50s.

INVESTOPEDIA EXPLAINS 'Peri-Retirement'

Retirement planning is more complicated now. While many employees could once count on company pension plans to cover retirement expenses, most workers aged 35 and older can no longer expect that type of income in retirement. Today, individuals entering the peri-retirement stage of life may have to balance economic and financial hurdles previous generations did not face, including supporting children who have been unable to find jobs and are living at home.

Planning during peri-retirement involves an examination of retirement income, and whether an individual’s current savings rate will be enough to support him or her in the post-job decades. If investors have not saved enough money to date, the years of peri-retirement may require a period of “catch up” savings, in which the savings rate is increased to make up for the gap between what they need to live comfortably in retirement and how much current savings are likely to provide. On the other hand, peri-retirement may also be a time when individuals explore working fewer hours, starting an encore career or spending more time on hobbies they will pursue after they retire.

RELATED TERMS
  1. Retirement Planning

    The process of determining retirement income goals and the actions ...
  2. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  3. Self Invested Personal Pension ...

    A tax-efficient retirement savings account available in Great ...
  4. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  5. Variable Annuitization

    An annuity option in which the amount of income payments received ...
  6. Gold IRA

    Definition of Gold IRA
RELATED FAQS
  1. What option strategies can I use to earn additional income when investing in the ...

    A risk-averse investor should build his retirement portfolio by putting together a well-diversified portfolio and then regularly ... Read Full Answer >>
  2. How do you mediate a dispute between primary and contingent beneficiaries of a trust?

    There may be a dispute between beneficiaries whenever the proceeds of a trust or other transfer on death (TOD) account are ... Read Full Answer >>
  3. Should I invest in penny stocks or large cap stocks for my retirement portfolio?

    Large-cap stocks are a superior investment option for retirement portfolios compared to penny stocks. Most penny stocks are ... Read Full Answer >>
  4. Should I purchase a master limited partnership (MLP) in my retirement account?

    Most investors should not purchase units in a master limited partnership, or MLP, in their retirement accounts. MLPs offer ... Read Full Answer >>
  5. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ... Read Full Answer >>
  6. What documents I need to transfer an IRA/SEP/SIMPLE to a Traditional IRA?

    Most firms require that you complete their account transfer request form, which they use to request the transfer of assets ... Read Full Answer >>
Related Articles
  1. Retirement

    Retirement Plans From Around The World

    How does the rest of the world stack up against the U.S. when it comes to planning and saving for retirement?
  2. Retirement

    Peri-Retirement: The New Life Transition

    Use your 30s and 40s to imagine new life options – and try them on for size
  3. Retirement

    Is Relying On Home Equity For Retirement A Good Idea?

    Of Americans aged 50 to 70, 47% have reported that they are relying on home equity to fund their retirements.
  4. Retirement

    Emerging Market ETFs For Your Retirement Accounts

    Emerging market ETFs are typically seen as riskier investments, but some of them may be able to strengthen your retirement accounts.
  5. Retirement

    Popular Ways To Delay Retirement

    From staying in the workforce longer to finding a part-time job after retirement, there are many ways that retirees postpone retiring completely.
  6. Retirement

    Is Working Longer A Viable Retirement Plan?

    People who are planning poorly for retirement are simply deciding to work longer - often out of neccessity. Is this a smart idea?
  7. Personal Finance

    How Children Can Help Parents With Retirement

    Sometimes the elderly lose their cognitive skills, that's when it may be time for their children to step in and assist with retirement planning.
  8. Budgeting

    The Complete Guide To Retirement Planning For 40-Somethings

    Here is everything you need to know about retirement planning if you are in your 40s.
  9. Retirement

    The Complete Guide To Retirement Planning For 50-Somethings

    Everything you need to know about retirement planning if you are in your 50s.
  10. Options & Futures

    Retirement Planning Basics

    Realizing your post-work goals need not be daunting. We'll tell you everything you need to know to get - and stay - on track.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center