Guide>Thinking about retirement>RETIREMENT

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Almost everyone expects to retire at some point; some think it is something they are entitled to whether they have planned for it or not. Those who have thoughtfully planned for retirement for most of their working lives will be able to retire with the standard of living to which they have become accustomed. While others will have to keep working into their later years or retire with a much lower standard of living.

What is retirement?

Retirement is usually the point where a person stops employment completely, but a person may also semi-retire by continuing to work but at reduced hours. Some people chose semi-retirement because they need the extra money and some just love to work and never want to quit working completely.

In most countries, the idea of retirement is of recent origin, being introduced during the late 19th and early 20th centuries. Previously, low life expectancy and the absence of pensions meant that most workers continued to work until death. Germany was the first country to introduce retirement, in 1889.

Most developed countries now have systems to provide pensions on retirement in old age. However, in many poorer countries, support for the old is still mainly provided by the family.

Reasons to retire

Many people choose to retire when they become eligible for private or public pension benefits. Some plan for early retirement by working hard and frugal saving until they can afford to retire without a pension; although a pension may come later when they become eligible. Others are forced to retire when physical conditions no longer allow them to work, either by illness, accident, or because their position is eliminated.

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