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
- Spousal BenefitA Social Security payment based on your spouse's earnings record, which can be larger than a benefit based on your own.
- Social SecurityA federal program that pays monthly income to retirees, funded by payroll taxes collected during your working years.
- Full Retirement AgeThe age at which you can collect your complete Social Security benefit without any reduction for claiming early.
- 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.
- Cost-of-Living Adjustment (COLA)A yearly increase to benefits like Social Security or pensions that helps your income keep pace with inflation.
More in Retirement
Plain-English education — not personalized legal, tax, or investment advice.