A situation in which one stops working in one's old age, or at least when one has saved enough money to last the remainder of one's life. Generally, retirement occurs after the age of 65, but this is not a hard-and-fast rule. Both governments and companies offer pensions, annuities, and other plans to provide for one's financial needs in retirement.
In order to compensate for the loss of income resulting from the cessation of employment, the beneficiary of the retirement is granted a financial benefit which usually consists of a monthly income. The benefit is for life and only expires upon the death of the person concerned. The amount of the benefit can be based on a different principle: for example, with the actuarial principle, it's established about the quantity and amount of the contributions made; with a substitution principle, it's established from a certain percentage of the amount of income during the working life.
Retirement is the termination of an individual's working careerwith the expectation that he or she will no longer undertake paid employment.