retirement

Retirement is the period of life after ceasing full-time employment, typically defined as the transition from wage labor to leisure, family time, volunteering, or new pursuits. The term is commonly tied to reaching a statutory retirement age or eligibility for public or occupational pensions, but individuals may retire earlier or later depending on finances, health, and personal preference. In many countries, retirement can be gradual, with reduced hours or phased withdrawal before full withdrawal from the workforce.

Financially, retirement is supported by a mix of income sources. Public programs such as state pensions or social security provide a base, while employer-sponsored pensions, defined contribution plans, personal savings, investments, and annuities can supplement benefits. Effective retirement planning involves estimating lifetime expenses, timing withdrawals to manage taxes and inflation, and planning for health care and long-term care costs. Some systems impose minimum distribution rules or penalties for early withdrawals.

Transition planning includes setting a retirement budget, organizing housing and healthcare arrangements, and securing legal documents such as wills and powers of attorney. Some individuals pursue phased retirement, part-time work, or volunteering to maintain social connections and purpose. Continuing education and the pursuit of new hobbies are common activities in retirement.

Retirement affects social and health aspects. Social networks, daily structure, and a sense of purpose influence well-being in later life. Regular physical activity, preventive medical care, and cognitive engagement are important for health maintenance. Housing options and support networks, including family and community services, influence independence and quality of life.

Global pension and retirement systems vary widely, and aging populations are prompting reforms in many countries. Policies address retirement ages, benefit levels, and funding, with implications for gender gaps and lifetime earnings.