DEFINITION of 'Retirement'

When a person chooses to leave the workforce. The concept of full retirement – being able to permanently leave the workforce in old age – is relatively new, and for the most part only culturally-widespread in first-world countries. Many developed countries have some type of national pension or benefits system (i.e. the United States' Social Security system) to help supplement retirees' incomes.

BREAKING DOWN 'Retirement'

Dramatic advances in healthcare have extended the lives of people in, predominantly, first-world and developed countries. That means that without adequate personal savings and/or pensions, people could easily outlive their retirement funds. In times of economic downturn retirees may choose to "come out of retirement" and re-enter the workforce on a seasonal, part-time or full-time basis to earn income and obtain benefits, especially costly health insurance coverage.

RELATED TERMS
  1. First World

    1. A country that was aligned with the West and opposed to the ...
  2. Normal Retirement Age - NRA

    The age at which people can receive full benefits upon leaving ...
  3. Phased Retirement

    A broad range of employment arrangements that allow an employee ...
  4. Outside Earnings

    Income that temporarily reduces a retired individual's Social ...
  5. Unfunded Pension Plan

    An employer managed retirement plan that uses the employer's ...
  6. Underfunded Pension Plan

    A company retirement plan that has more liabilities than assets. ...
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

    Raising The Retirement Age: 5 Countries Testing The Waters

    Many countries are raising the retirement ages for their citizens. Find out what this means to you.
  3. Retirement

    The Rise of the Semi-Retired Life

    The number of people leaving the workforce to become semi-retired, instead of fully retired, is growing. Here is a look at the reasons and options.
  4. Retirement

    You Might Retire Late – But Be Ready by 62

    If you want to retire later, also plan for what you'd do if you end up having to stop work sooner.
  5. Retirement

    6 Surprising Facts About Retirement

    With the shift away from pensions, workers are becoming more responsible for their own retirement needs. Unfortunately, many are falling short.
  6. Retirement

    Common Risks That Can Ruin Your Retirement

    These unexpected bumps can sideline your post-work plans and prevent you from riding out your assets.
  7. Managing Wealth

    How Pensions, Social Security Differ

    Both pensions and Social Security provide an income stream to retirees, but they differ widely on how they're structured and funded. Here's the lowdown.
  8. Retirement

    How Does US Social Security Measure Up Abroad?

    Social Security is a hotly debated topic. After examining the retirement plans of three different countries, the U.S.'s does not come out the winner.
  9. Retirement

    The Retirement Dilemma Facing American Workers

    With pensions dwindling, Americans need to start saving early and finance their own retirement.
  10. Retirement

    Retirement: U.S. vs. Abroad

    Which option would make more sense for you: retiring abroad or staying at home in the U.S.? A look at the advantages and disadvantages of each route.
Hot Definitions
  1. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  2. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  3. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  4. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  5. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
  6. Pyramid Scheme

    An illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, ...
Trading Center