Retirement implies a cessation of employment, generally for reasons of age.
Retirement is the result of retiring (stopping working due to age, accessing a pension). The concept, originating from the Latin term jubilatio , also allows us to name the payment that a person receives when they are retired.
Retirement, at a general level, determines that a person is no longer physically or mentally capable of continuing to do the work they did until then.
Types of retirement
Retirement can be of the ordinary type, when the person stops working after reaching the age stipulated by law for this purpose; or extraordinary , when you suddenly have to give up work due to major causes, accidents, disability , etc. In both cases, an administrative procedure needs to be carried out to agree on the conditions of termination of employment and calculate the value of the amount that that person will receive as a retirement pension.
For example: "I am only two years away from retirement" , "The president announced an increase in the minimum retirement" , "I have not yet received this month's retirement" .
The pension received by someone who made the corresponding contributions and no longer works is called retirement.
The cessation of work
Retirement, therefore, is the name of an administrative procedure through which a person in labor activity stops working and becomes a taxable person. To reach retirement, the subject has to reach a certain age established by law. In most countries , the retirement age is around 65 years .
Stopping working, of course, causes the individual to stop receiving income. The State , therefore, provides an income to the retiree so that he can support himself. This income, which is also known as retirement, is maintained until the person's death.
Retirement as a right
Retirement is a right and is established and regulated by the Social Security of each country. It consists of issuing monthly money to those people who have reached a certain age or have retired for other reasons. The State is responsible for paying said sum and it remains until the person dies. Regarding the amount of the pension that the retiree receives, it is set according to different calculations depending on the country and current legislation .
In each country, as we have said, the laws that exist around retirement are diverse. In some, the minimum age that a person must be to enjoy this right is 67 years (those who have a disability and can access a pension regardless of their age are excluded); This age is generally relative to the work being performed; in the case of jobs where physical effort is extreme or dangerous, this limit is usually lowered. In certain legislations, however, workers are allowed to retire before said age if they have contributed the estimated amount of money. All these issues are established by law and any citizen has the right to know about them by going to the corresponding office in their place of residence.
Related concepts
Early retirement occurs when a person who is of a certain age and has made a certain amount of contributions and due to certain medical reasons, retires, becoming a contributory pensioner, leaving the world of work before the age established by law for retirement. retirement.
The concept of early retirement , although many confuse it with early retirement, implies different things. It is a non-legal term (from the law a pre-retiree is an unemployed person who is not looking for employment); This is a person who has reached an agreement with the company for which they work through which they agree to terminate the employment relationship. In this agreement, the company undertakes to pay a certain percentage of the normal salary in terms of compensation and in turn talks with Social Security to obtain a relative retirement from the moment of cessation of work.
Likewise, a partial retirement is an early retirement in which those involved reduce their working hours . The pension that the retiree receives is a percentage of the salary that he continues to receive for his part-time work. When this person reaches retirement age, they then access an ordinary retirement.
Finally, it should be noted that the funds that allow retirement payments come from active workers (who are deducted a percentage of their salary for this purpose). This means that current workers pay for today's retirees and that these same workers will be tomorrow's retirees.