Retirement
Retirement is the stage of life when a person stops working permanently and relies on their savings, investments, pensions, or other sources of income to cover living expenses.
Example #1
For example, Jane retired at the age of 65 after working for 40 years. She now relies on her pension and savings to support her lifestyle.
Example #2
Another example is Mark, who decided to retire early at 55 by carefully planning his investments and savings to ensure financial security.
Misuse
Misusing retirement funds by withdrawing them for non-retirement purposes can lead to financial instability during old age. It's crucial to protect retirement savings from early withdrawals or unnecessary expenses.
Benefits
One of the benefits of retirement is the opportunity to enjoy leisure time, pursue hobbies, travel, or spend more time with family and friends without the constraints of a full-time job.
Conclusion
Retirement is a significant life transition that requires careful financial planning to ensure a comfortable and secure future. Protecting retirement savings and making wise investment decisions are essential steps towards a successful retirement.
Related Terms
See Also
401(k)SEP IRATraditional IRA401(k)Compound InterestIRA