Retirement refers to withdrawal from an individual’s active working life. It is possible to partly retire simply by cutting down on the number of hours that you actually work. However, statistics have shown that many people prefer to exist in a state that is characteristically referred to as pre-retirement which basically means that you are in some kind of passive withdrawal from active working but you are still involved. The 2020 medicare supplement plans can save you money.

Influencers to retirement

  • Research and even statistics have shown the overall preference of people to go for retirement when they think they are eligible for acquisition of the retirement benefits. These benefits are available both in the private as well as the public sector.
  • Some people are also influenced to go on retirement whether early or at the appropriate time due to illnesses that render them incapable of continuing to work. Bodily conditions therefore no longer allow the person to work any longer (by illness or accident) or as a result of legislation concerning their position.
  • The desire to set up one’s own business and therefore to cut down on the number of hours you are actually serving at your place of employment.

Retirement benefits were previously a very strange concept until its introduction by the Germans. Nowadays, most developed countries have systems to provide pensions on retirement in old age, which may be sponsored by employers or the state.  Poorer countries, however, believe that support for the older adults is the responsibility of the family. Today, retirement with a pension is considered a right of the worker in many societies, and hard ideological, social, cultural and political battles have been fought over whether this is a right. In many western countries this right is mentioned in their constitution documents.

Retirement benefits

Retirement benefits refer to the benefits that are payable to the member of the pension scheme either on retirement or withdrawal from active service in advance. Retirement pensions constitute of the lump sums that follow retirement and gratuities.

Dependants’ pension

These refer to the benefits paid to the older person’s dependants such as children or spouses, following the member’s death in retirement.  Pension is a fund in which a sum of money is added during an employee’s employment years and from which payments are drawn in support of the member’s withdrawal from active service in the form of payments made from time to time but on regular intervals.