Overview
This lecture discusses retirement: its meaning, ages and financial planning, what people do after retiring, and various ways to prepare for it.
Understanding Retirement
- Retirement is when a person stops working and finishes their career.
- Retirement ages vary by country, usually in the 60s; in the U.S., it's 66 or 67.
- Retirement age in the U.S. depends on your birth year and may change in the future.
Financial Aspects of Retirement
- In the U.S., retirees get money from the government called social security.
- Social security money is usually not enough to live on, so people need extra savings or investments.
- Saving money from a young age helps grow funds for retirement.
- Inflation can decrease the value of your savings over time.
- Investing in retirement plans, stocks, cryptocurrency, metals, or real estate can increase future funds.
- Investing in children by giving them time, money, and support may result in their help during old age.
Retirement Activities
- Common activities for retired people in the U.S. include playing golf, traveling, and caring for grandchildren.
- Many retirees enjoy spending time with family, especially grandchildren.
- Some people never retire because they either need the money or enjoy working.
Key Terms & Definitions
- Retirement — the stage of life when a person stops working permanently.
- Social Security — government payments to retired people, mainly in the U.S.
- Inflation — the decrease in the value of currency over time, reducing purchasing power.
- Investment — using money to buy assets like stocks, property, or metals to earn more money in the future.
Action Items / Next Steps
- Consider starting to save or invest early for retirement.
- Think about what activities you would want to do after retiring.
- Optional: Download the Listening Time podcast for more practice.