Retirement

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. Sacred Cow

    A firmly held mainstream belief that is considered to be true ...
  2. Retirement Contribution

    A monetary contribution to a retirement plan. Retirement contributions ...
  3. Phases Of Retirement

    A six-stage process described by researcher Robert Atchley that ...
  4. Retirement Planner

    A practicing professional who helps individuals prepare a retirement ...
  5. Retirement Planning

    The process of determining retirement income goals and the actions ...
  6. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
Related Articles
  1. Retirement

    3 Affordable Arizona Retirement Communities

    Discover the reasons why many active adults enjoy retirement in Arizona, and learn more about some of the most affordable retirement communities in the state.
  2. Retirement

    Austin, Texas: The Best Retirement Communities

    Discover five of the most desirable retirement communities for seniors located in the Austin/Georgetown metropolitan area in Texas.
  3. Retirement

    California's 3 Most Affordable Retirement Communities

    Discover why California is a popular retirement destination, and learn about some of the most affordable retirement communities in the state.
  4. Retirement

    3 Connecticut Retirement Communities That Won't Break the Bank

    Discover why Connecticut is a popular retirement destination for many individuals, and learn about some of the most affordable communities in the state.
  5. Retirement

    Beaufort, South Carolina: The 5 Best Retirement Communities

    Discover why the Hilton Head area of South Carolina is a popular destination for retirees, and learn about the top five retirement communities in the area.
  6. Retirement

    Dallas, Texas: The 5 Best Retirement Communities

    Discover why the Dallas/Fort Worth area of Texas is a popular retirement destination, and five of the best retirement communities in the area.
  7. Retirement

    Arizona's 4 Best Cities For Ultra-Rich Retirees

    Discover the aspects that make Arizona an attractive destination for retirement, and learn about the cities where retirees are choosing to settle.
  8. Home & Auto

    Top 4 California Cities to Retire if You're Ultra-Rich

    Discover why many rich individuals are choosing to retire in California, and some of the cities that are popular as retirement destinations.
  9. Retirement

    Pittsburgh's 5 Best Retirement Communities

    Discover why many retirees are settling in Pittsburgh; read about several retirement communities in the area and their attractive qualities.
  10. Retirement

    Houston, Texas: The 5 Best Retirement Communities

    Learn why the Houston, Texas area is one of the most popular retirement destinations, and discover five of the top retirement communities in the area.
RELATED FAQS
  1. Do financial advisors charge VATs?

    The Personal Finance Society (PFS) and with Her Majesty's Revenue and Customs (HMRC) have outlined when a value-added tax ... Read Full Answer >>
  2. Are variable annuities a good retirement investment?

    There are many financial advisors who advise against variable annuities because of high fees and low returns. Still, some ... Read Full Answer >>
  3. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
  4. If I retire in the Philippines, will I be able to work or start a small business?

    Foreign retirees entering the Philippines with plans to become permanent residents may start a business or work once they ... Read Full Answer >>
  5. What is the maximum I can receive from my Social Security retirement benefit?

    The maximum monthly Social Security benefit payment for a person retiring in 2016 at full retirement age is $2,639. However, ... Read Full Answer >>
  6. How does my spousal Social Security benefit work?

    If you have never worked or paid Social Security taxes, you will not be eligible to receive Social Security retirement benefits ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center