Retirement
The life stage when a person stops working and lives primarily on accumulated savings and investment income.
What is Retirement?
Retirement is the period of life when an individual permanently or semi-permanently withdraws from the workforce, relying on accumulated savings, investment portfolios, pensions, and government benefits such as Social Security for income. In the U.S., traditional retirement age is 65–67, aligned with full Social Security eligibility, but the FIRE (Financial Independence, Retire Early) movement has popularized earlier retirement through aggressive saving and investing. Funding a successful retirement requires building sufficient assets to sustain decades of living expenses — financial planners commonly use the 4% rule as a guide for sustainable annual withdrawals.
Example
According to the Social Security Administration, the average monthly Social Security benefit in 2024 was approximately $1,907. For someone with $1 million in retirement savings following the 4% withdrawal rule, that adds another $3,333 per month — a combined monthly income of roughly $5,240. Whether that is sufficient depends heavily on lifestyle, healthcare costs, and location.
Source: Social Security Administration — Retirement Benefits