When a person withdraws from their occupation or position, after a considerable amount of time, to take a break permanently from active work life.
How Retired Works
An individual retires when they stop working in their current position or occupation. While most people assume that only older people retire, an individual can retire early for valid reasons. The full retirement age in the United States is presently 66 years and 60 days for people born in 1955. However, the age limit is now 67 years for individuals born in 1960 and after. Early retirement begins at 62, and this is the earliest age a person can start to receive Social Security benefits.
Asides from reaching the stipulated retirement age, some other reasons people retire can include health complications. A general survey showed that older workers dealing with at least one health complication -despite their work experience- aren't as active as the average worker. Health conditions such as Parkinson's Disease, Multiple Sclerosis, stroke, trauma, Congenital Abnormality, or Arthritis can inspire a person to retire. Working senior citizens with poor health can retire earlier than workers of the same age but in healthier conditions.
Individuals can also retire when they have adequate combined savings, investment wages, or pensions to cater to their living costs. Generally, about 40 percent of pre-retirement income comes from Social Security for people who retire early. Nonetheless, Social Security benefits are lower for people who retire early. Some factors determine the amount of Social Security benefits paid to a person, including the amount put into the system during their working years. The total of an individual's expected annual benefits would be a consideration when determining how much retirement earning they are required to live on.
Example of Retired
Almost every family has a retired person who either spends time relaxing or running a small business. Ending your active working years means you are retired. In essence, an excellent example of the term "retired" is an old soldier who no longer serves in the army due to age. After giving his youthful years to the US Army, Mr. Alex, now 65 years old, decided to live a simple and quiet life in a rural area. As a retired soldier, Mr. Alex is paid a fixed amount in retirement benefits (also called pension) by the United States government.
The average retirement age for a US-based teacher is 59. So, if Mrs. Alex leaves active service as a teacher at 59, she is, therefore, retired. Mrs. Alex, just like her husband, receives a pension from the government if she served in a government school. As a retired teacher, Mrs. Alex may choose to spend the rest of her life taking care of herself with the money she gets as a pension or venture into other activities.
You can choose to retire from a privately-owned company. However, not every business or company pays retired workers. Sole-proprietors may decide to hand their businesses' leadership to competent hands and enjoy retirement funded by accumulated savings in a retirement account.