Flexibility In Retirement

Retired workers support themselves either through pensions or savings. In most cases the money is provided by the government, but sometimes granted only by private subscriptions to mutual funds. In this latter case, subscriptions might be compulsory or voluntary. In some countries an additional “bonus” is granted una tantum (once only) in proportion to the years of work and the average wages; this is usually provided by the employer.

The financial weight of provision of pensions on a government’s budget is often heavy and is the reason for political debates about the retirement age.The state might be interested in a later retirement age for economic reasons.

The cost of health care in retirement is large, because people tend to be ill more frequently in later life.  While we do have health care available and provided by the government, these benefits can be limited and may still require some amount of out-of-pocket expense to the patient.

Overall, income after retirement can come from state pensions, occupational pensions, private savings and investments (private pension funds, owned housing), donations (e.g. by children), and social benefits. On a personal level, the rising cost of living during retirement is a serious concern to many older adults. Health care costs play an important role.