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
- Nest EggThe total pool of money and investments you build up to fund your living expenses throughout retirement.
- Social SecurityA federal program that pays monthly income to retirees, funded by payroll taxes collected during your working years.
- PensionA retirement plan where your employer promises a set monthly payment for life, usually based on your salary and years worked.
- AnnuityA contract with an insurance company that converts a sum of money into a stream of steady payments over time.
- Safe Withdrawal RateThe percentage of your savings you can spend each year with low risk of running out of money during retirement.
- Required Minimum Distribution (RMD)The minimum amount you are required to withdraw from certain retirement accounts each year once you reach a set age.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.