Definition of ‘Retirement’
The process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Preparing for retirement includes identifying sources of income, estimating expenses, implementing a savings program and managing assets. Future cash flows are estimated to determine if the retirement income goal will be achieved.
Breaking Down ‘Retirement’
In the simplest sense, retirement is the preparing one does to be ready for life after paid work ends, not just financially but in all aspects of life. The non-financial aspects include such lifestyle choices as how to spend time in retirement, where to live, when to completely quit working, etc. A holistic approach to preparing for retirement considers all of these areas.