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. Elder Care

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

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

    Definition of Gold IRA
  5. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all ...
Related Articles
  1. Retirement Plans From Around The World
    Retirement

    Retirement Plans From Around The World

  2. Peri-Retirement: The New Life Transition
    Retirement

    Peri-Retirement: The New Life Transition

  3. Is Relying On Home Equity For Retirement ...
    Retirement

    Is Relying On Home Equity For Retirement ...

  4. Emerging Market ETFs For Your Retirement ...
    Retirement

    Emerging Market ETFs For Your Retirement ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center