Retirement is not just the end of life but a beginning of a new chapter. The average retirement age in the US is 62 while the average retirement length is of 18 years. But slowly the age of retirement have changed as people are living a healthy lifestyle and living longer.
If people can financially afford the standard of living, they are leaving their job before age 50. This is known as ‘early retirement’ and allows the worker to enjoy his or her life by indulging in an activity they wanted to in their job life. They can opt for a different profession, or open a shop or business.
If someone becomes a victim of injury while working and is cant work due to medical limitations, another type of retirement comes into effect known as ‘disability retirement’. Here the injured worker gets a monthly payment which is a portion of the salary he used to receive.
There may be different retirement age requirements in different countries but normally it is between 55 and 70. The state retirement age is 66 years in the US and early retirement age is 62. Upon retirement, you will have a choice of options. With lengthy life, many baby boomers will be having 20, 30 or even 40 years of retired life. It’s like for a 65-year-old couple there is a 45% chance that they may live till 95. But many will not be able to afford a longer retirement life as saving rates become low. As retirees turn 60, they may have realized they do not have much savings to support them for the future.
There are various retirement benefits which are calculated on four factors. These include person’s age, the average of the 3 highest consecutive years’ salaries, group classification, and years of creditable service. The single pension at retirement gives you a payment monthly. The joint pension at retirement plan will also give you a monthly income. Retirement pensions can be an employment-based pensions, social and state pensions and disability pensions. The income for the employment based pensions is paid from the fund in which both employer and employee contribute.