Retirement is considered as a period in an individual’s life during which he is not at all working for some monetary returns. In United States the basic age for retiring is 65 but people can have voluntarily early retirement at any age to cater for their other needs.
Pension, as most of the individuals must have heard is used to portray payments that are received by a person on his retirement. There are various plans, which give the financial freedom to a person to retire early and live life to the fullest without working all the time to meet the financial requirements. A person retiring early from the government service need not worry about the social security benefit. One can still enjoy it while earning after the retirement. The benefit from the social security is reduced proportionally for the person until he or she reaches the full retirement age. Once the person is 65, which is the official retirement age, the benefits are recalculated excluding the time the person worked and made the extra earnings. The formula followed by the social security is simple. For every two dollars that the employee makes one dollar of the benefit is reduced. There are various slabs according to which the benefit is calculated for retirement.
The concept of retirement has changed to a great extent. People can plan their retirement in such a way that their financial issues are taken care of. To leave them time to pursue their hobby. One has to know all about the pension plans before opting for an early retirement as it may not be operational until the person reaches the official retirement age. A very good guide book to read on this is the book Early Retirement Extreme by Jacob Lund Fisker who at the age of 35 years is already retained.
Retirement is no longer viewed as a time of boredom with the advent of the concept of retirement homes. It is a community for the senior citizens that are active. These communities had recreational facilities, which keep the active members busy with many retirement hobbies. Staying within the community one can take up hobbies, which could fetch them some extra cash. There are many more choices for the retired then there were say fifty years ago. Retirement nowadays has no special age limit, rather depends on good financial freedom.