Understanding Retirement

Why do some people retire earlier than others? And what role does the pension system in a country play in this decision?

At the outset, it is important to distinguish between voluntary and involuntary retirement. Voluntary retirement involves an individual with a clear option to continue working in their existing or comparable job. On the other hand, we may also imagine an individual who loses their previous job, is of an “advanced” age and simply cannot find another, comparable one. Perhaps no jobs are forthcoming for an individual of this age, even at a reduced wage or salary. In this post, we will be primarily concerned with the first type of retirement.