Retirement
Retirement is the withdrawal from paid work, often marking the end of a professional career. It may be gradual or complete, voluntary or involuntary.
Pension: A pension is a retirement income paid regularly, usually by an employer or public program. Pensions provide one way to replace earnings after paid work ends.
Defined-benefit pension plan: A defined-benefit pension plan promises retirement payments calculated by a formula, often using salary and years of service. It supplies retirement income through a benefit promised by an employer.
Retirement income: Retirement income is money received after or during withdrawal from paid work, including pensions, benefits, and savings withdrawals. It replaces wages and determines the resources available after a career ends.
Early retirement: Early retirement is leaving paid work before a commonly expected or officially defined retirement age. It is a distinct timing choice that can affect benefit eligibility and income.
Social Security: Social Security is a United States federal program providing retirement, disability, and survivor benefits. Its retirement benefits connect eligibility age and work history to income after employment.
Defined-contribution plan: A defined-contribution plan invests contributions in an individual account whose eventual value depends on contributions and investment returns. Its account balance, rather than a promised payment, determines much of the retirement income.
Aging: Aging is the biological and social process of change over the course of a person's life. Retirement often coincides with later life, though the two processes are distinct.
Mandatory retirement: Mandatory retirement is a policy or practice requiring workers to leave employment at a specified age. Unlike voluntary retirement, it imposes an age-based exit from work.
Retirement age: Retirement age is an age associated with leaving work or becoming eligible for retirement benefits. It shapes when people can claim benefits, though it does not determine when they stop working.
401(k): A 401(k) is a United States employer-sponsored retirement savings plan with tax advantages. Workers may accumulate retirement savings through payroll contributions and employer matching.