Retirement Definitions

Retirement: The period of a person's life when they stop working, typically after reaching a certain age or meeting certain criteria. Retirement can be voluntary or involuntary, and is often associated with a reduction in work responsibilities, a change in lifestyle, and the need to manage finances and health.

Retirement age: The age at which a person is expected or able to retire from work. This age can vary depending on factors such as employment contract, pension plan, government policies, and personal preference. Retirement age is often associated with eligibility for retirement benefits and Social Security.

Early retirement: Retirement that occurs before the normal retirement age. Early retirement is usually voluntary, although it can also be involuntary due to factors such as health, job loss, or company downsizing. Early retirement can offer benefits such as increased leisure time, but may also require careful planning to ensure financial security.

Full retirement age: The age at which a person is entitled to receive full Social Security benefits. The full retirement age is determined by the year of birth, and can range from 66 to 67 for people born after 1954. Waiting until full retirement age to claim Social Security benefits can result in a higher monthly benefit amount.

Partial retirement: Working reduced hours or a reduced workload as a transition to full retirement. Partial retirement can help people adjust to retirement by providing a gradual reduction in work responsibilities and income. It may also offer the opportunity to continue working in a field or job that is enjoyable or meaningful.

Semi-retirement: Working part-time or working in a less demanding position as a transition to full retirement. Semi-retirement can also help people adjust to retirement by providing a gradual reduction in work responsibilities and income. It may also offer the opportunity to pursue other interests or engage in volunteer work.

Phased retirement: A gradual transition to retirement, where an employee reduces their hours or workload over time. Phased retirement is often used as a way to retain valuable employees, and may be offered as part of a retirement plan or as a workplace benefit.

Voluntary retirement: Retirement that is initiated by the employee, rather than the employer. Voluntary retirement may be a personal decision based on factors such as health, finances, or family obligations. It may also be influenced by changes in the workplace or job market.

Involuntary retirement: Retirement that is initiated by the employer, rather than the employee. Involuntary retirement may occur due to factors such as downsizing, restructuring, or changes in business strategy. It can be a difficult transition for employees, and may require careful planning to ensure financial security.

Forced retirement: Retirement that is required due to age or other factors, such as a company's policy. Forced retirement can be a contentious issue, as it may be perceived as discriminatory or unfair. Some countries have laws that prohibit mandatory retirement based on age.

Bridge job: A job taken by an older worker to bridge the gap between full-time work and retirement. Bridge jobs may be part-time or temporary, and can provide income and social engagement while easing the transition to retirement.

Second career: A career pursued after retirement from the first career. Second careers may be in a different field or industry, or may involve starting a business or pursuing a passion. Second careers can provide a sense of purpose and fulfillment, as well as additional income.

Retirement community: A residential community specifically designed for retirees. Retirement communities may offer amenities such as social activities, healthcare services, and recreational facilities. They may also provide assistance with daily living activities and transportation.

Active adult community: A residential community for older adults who are still active and independent. Active adult communities may offer amenities such as fitness centers, swimming pools, and golf courses, and may be located in warm climates or near desirable destinations.

Estate planning: The process of managing one's assets and affairs in preparation for death or incapacity. Estate planning may involve creating a will, establishing a trust, and designating beneficiaries for retirement accounts and life insurance policies.