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. Self Invested Personal Pension ...

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

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

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

    Definition of Gold IRA
  6. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
RELATED FAQS
  1. What does U.S. law say about contingent beneficiaries?

    In the United States, posthumous asset transfers only require the listing of a primary beneficiary. Contingent beneficiaries ... Read Full Answer >>
  2. Places where I can open an IRA Account?

    An individual retirement account can be opened through a range of major financial institutions, including brokerage firms ... Read Full Answer >>
  3. Is a treasury bond a good investment for retirement?

    Individuals saving toward retirement use a variety of investments to accumulate funds over time, including stocks, bonds ... Read Full Answer >>
  4. What is a drawdown arrangement?

    A drawdown arrangement is most frequently associated with pension funds and how retirement income is received. The principle ... Read Full Answer >>
  5. What rate of return should I expect on my 401(k)?

    An employer-sponsored retirement plan such as a 401(k) can be a valuable tool in accumulating savings for the long-term. ... Read Full Answer >>
  6. How do you set up a revocable trust?

    A revocable living trust (RLT) is an arrangement in which a grantor transfers ownership of property through a trust. The ... 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. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center