RETIREMENT INCOME Meaning and
Definition
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Retirement income refers to the funds or financial resources that an individual or couple receives after leaving their employment or ceasing to work. It is a crucial aspect of retirement planning as it ensures continued financial stability during the retirement years. Retirement income can come from various sources, such as pensions, retirement savings accounts, annuities, Social Security benefits, and other investments.
Pensions are one common source of retirement income. These are typically employer-sponsored plans that provide a regular stream of income to retirees based on their years of service and salary history. Retirement savings accounts like 401(k) or individual retirement accounts (IRAs) allow individuals to contribute a portion of their income during their working years, which can grow and be withdrawn during retirement.
Annuities are another type of retirement income, where individuals make a lump-sum payment or a series of payments to an insurance company, which in turn provides regular payments back to the retiree. Social Security benefits are generally available to individuals who have paid into the system during their working years and provide a monthly income during retirement based on the individual's earnings history.
Other investments such as stocks, bonds, real estate, or rental income can also contribute to retirement income. It is essential to have a diverse range of income sources to ensure financial security during retirement and to account for potential market fluctuations or unexpected expenses.
Overall, retirement income is the monetary support that individuals receive to cover their expenses and maintain their desired lifestyle once they stop working or reduce their working hours. It is crucial to plan and save for retirement to build a reliable and sustainable income stream during the post-employment phase of life.
Common Misspellings for RETIREMENT INCOME
- eetirement income
- detirement income
- fetirement income
- tetirement income
- 5etirement income
- 4etirement income
- rwtirement income
- rstirement income
- rdtirement income
- rrtirement income
- r4tirement income
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- rerirement income
- refirement income
- regirement income
- reyirement income
- re6irement income
- re5irement income
- returement income
- retjrement income
Etymology of RETIREMENT INCOME
The word "retirement" comes from the Old French word "retirer", meaning "to withdraw" or "to retreat". The term "income" originates from the Middle English word "incomen", which means "to come in". Therefore, the etymology of the term "retirement income" can be understood as combining the concept of withdrawing or retreating from active work with the idea of income that one receives during the retirement period.
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