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
- Social SecurityA federal program that pays monthly income to retirees, funded by payroll taxes collected during your working years.
- Early RetirementLeaving the workforce before the traditional retirement age, which requires enough savings to bridge years without a paycheck.
- Delayed Retirement CreditsExtra amounts added to your Social Security benefit for each month you wait to claim past your full retirement age.
- Cost-of-Living Adjustment (COLA)A yearly increase to benefits like Social Security or pensions that helps your income keep pace with inflation.
- Spousal BenefitA Social Security payment based on your spouse's earnings record, which can be larger than a benefit based on your own.
- Retirement AgeThe age at which you choose to stop working, which affects your savings, Social Security timing, and Medicare eligibility.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.