Retirement is when someone stops working at their regular job, usually after many years, and lives on money they've saved or receive as a pension. Most people retire when they're around 65 or 70 years old, though some retire earlier or later depending on their circumstances.

For decades, people go to work each day, earning money and often saving a portion of it for the future. When they retire, they stop earning a regular paycheck but still need money for housing, food, and everything else. That's why retirement planning matters: people set aside savings throughout their working years, invest in retirement accounts, or earn pensions from their employers. Social Security, a government program, also provides monthly payments to retired Americans.

Retirement doesn't mean doing nothing. Many retired people travel, spend time with grandchildren, volunteer, pursue hobbies they never had time for, or even start new projects and small businesses. A retired teacher might finally write that novel she always dreamed about. A retired engineer might build furniture in his workshop or mentor younger students.

The concept of retirement is relatively modern. For most of human history, people worked as long as they were physically able. Widespread retirement became possible only as societies grew wealthier and developed systems to support older citizens who had spent their lives contributing to their communities.