Retirement plans

Retirement plans

The period of a person's life during which he/she is no longer working, or the commencement of that period. The standard age for retirement in the United States is considered 65, although many individuals choose to retire earlier or later due to personal or financial reasons. After retirement, an individual's needs are usually funded through any combination of sources including a pension plan, a retirement account such as a 401(k) plan, Social Security, and/or a savings account/nest egg.

 Retirement as a concept has both old and new definitions. The old definition of retirement was when a worker couldn’t do something anymore. He or she is laid off. However,. The new definition of retirement is when a worker does not have to do something anymore.

Note that there are three main types of retirement, namely voluntary, compulsory and forced retirement.

Voluntary retirement occurs when the employee decides on his own to retire  from service before the attainment of the stipulated retiring age or years of service. Compulsory retirement occurs when the employee had to retire because he has attained the maximum age of retirement or years of service. Forced retirement on the other hand, occurs when the employee is not consulted before he is made to withdraw from service with or without benefits

Fear or anxiety about retirement is one constant companion of most employees’ right from day of their engagement in the private or public service.

Those who failed to prepare adequately for retirement) are bound to face certain problems in retirement for a number of reasons. Some of these reasons and accompanying problems include:
(i) Lack of understanding;  
(ii) Financial problems; 
(iii) Social stigma and
(iv) Health constraints

Retirement counseling is the process of providing prospective retirees with factual information needed to make a pleasant transition from world of work into the world of less rigorous occupational schedules – retirement. The...

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