Retirement is the stage of life that begins when a person’s working career ends. People often retire from their occupations to devote more time to hobbies, leisure, travel, and friends and family. Most people retire when they are in their 60’s, though some retire earlier or later in life. Retirement age depends on a number of factors, including health, job demands, and financial situation. Many individuals who have attained great wealth retire at an early age. Retirement practices vary from country to country.
Most retirees in industrialized nations receive money from income plans called pensions. The governments of many countries provide social security and other pension plans to provide financial security for retired workers. In addition, many retirees receive money from private pension plans offered by employers. Some people whose employers do not offer pension plans establish individual pension plans with financial institutions. In many cases, a decision to retire depends largely on the worker’s eligibility for pension plans and on the amount of money the person has saved while working.
During retirement, many people continue to live in the communities and homes where they lived while working. But many retirees change location, sometimes seeking warmer climates or greater recreational opportunities. Some retirees move to retirement communities, which are housing arrangements that provide services geared toward retirees and elderly people.
The development of retirement as a distinct stage of life took place primarily in the 1900’s. Before the 1900’s, people usually worked until they became physically unable to work, or until they died. In 1935, the United States Congress passed the Social Security Act, which provided a retirement income to workers in commerce and industry. By 1956, the act had been expanded to cover most people with work experience who retired. In Canada, the Old Age Security program began providing retirement funds in 1952, and the Canada Pension Plan began providing funds in 1966. Also in the mid-1900’s, a number of organizations began addressing the specific needs of retirees and elderly people. In the United States, the American Association of Retired Persons (now AARP) was founded in 1958.
For many years, people viewed retirement as a period for a person to withdraw from the workplace and the community in preparation for death. Today, however, people increasingly view retirement as a time to pursue interests and activities, and as a period of intellectual growth. Most retirees maintain their preretirement levels of activity for many years. Many join church groups, senior citizens’ clubs, and other organizations for social and recreational activities. Some retirees begin new careers after retiring from previous ones. Many others work part-time.
See also AARP ; Old age ; Pension ; Pension Benefit Guaranty Corporation ; Social security .
