Legal Definitions - Retirement benefits

Retirement benefits refer to the financial payments, healthcare coverage, or other forms of support an individual receives after they have concluded their working career, typically upon reaching a certain age. These benefits are designed to provide income and security during the years following active employment. They can originate from various sources, including government programs, private employers, or personal savings plans.

• Example 1 (Government Social Security): After working for over 40 years as a librarian, Mr. Henderson turned 68 and began receiving a monthly check from the Social Security Administration. These payments help cover his living expenses now that he is no longer employed.

  This illustrates retirement benefits because the monthly checks Mr. Henderson receives are financial support provided by a government program after he ended his working life due to reaching retirement age.

• Example 2 (Employer Pension and Healthcare): Ms. Chen retired from her position at a large manufacturing company after 30 years of service. As part of her retirement package, she now receives a fixed monthly payment directly from the company's pension fund and continues to have access to their group health insurance plan at a reduced cost.

  Here, both the regular pension payment and the subsidized health insurance are retirement benefits. They are forms of financial and medical support provided by her former employer after she concluded her career.

• Example 3 (Personal Retirement Account): Upon retiring from her career as an architect, Dr. Lee started making regular withdrawals from her 401(k) account, which she had contributed to throughout her working life with matching contributions from her employer. These withdrawals provide her with income to maintain her lifestyle.

  The funds Dr. Lee withdraws from her 401(k) are retirement benefits because they represent accumulated savings and investments specifically designated to provide income and financial security after she stopped working.