Retirement as a Social Institution

Abstract

Retirement can have at least two basic meanings. For the individual, it means withdrawal from one's business or occupation either to enjoy more leisure Or freedom or to cope with health problems. For the employer, retirement means the removal or withdrawal from a position of employment of someone eligible for retirement. Retirement is usually accompanied by a pension-a periodic payment provided by an employer, union, or government in consideration of past service. Retirement and pensions are differentiated from unemployment and un­ employment benefits by the rules through which one becomes entitled to them. Retirement and pensions are available only to older workers who have earned the right to them through lengthy service. Retirement benefits are usually payable for life. Unemployment can befall anyone at any age . Entitlement to unemployment benefits does not require lengthy service, and unemployment benefits are usually available for only a short time. Retirement is commonly viewed as all-or-nothing, and indeed many current retirement policies reflect this view. Nevertheless, retirement can be gradual Or partial rather than sudden or complete . Thus , operational definition of retirement as a substantial reduction in employment accompanied by income from a retirement pension or personal savings is preferable to dichotomous definitions (Atchley 1979). A great deal has been written about retirement, especially in the past decade . Much of this literature has relevance for sociol­ ogy in that it deals with social structures and social processes and how they influence retirement poliCies and individual decisions about retirement .