A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Retirement AgeThe age at which you choose to stop working, which affects your savings, Social Security timing, and Medicare eligibility.
- Full Retirement AgeThe age at which you can collect your complete Social Security benefit without any reduction for claiming early.
- 72(t) DistributionA way to take penalty-free early withdrawals from a retirement account through a series of equal, scheduled payments.
- Safe Withdrawal RateThe percentage of your savings you can spend each year with low risk of running out of money during retirement.
- Early Withdrawal PenaltyA fee a bank charges when you take money out of a certificate of deposit before its agreed-upon maturity date.
- Nest EggThe total pool of money and investments you build up to fund your living expenses throughout retirement.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.