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By Marion Humphries
Special to the Financial Independence Hub
Let’s start by defining the word retirement. A quick online search reveals that the literal meaning of the word retirement is: to withdraw, retreat; the time at which one withdraws from the workforce.
By definition, the act of retiring has a very passive connotation. No wonder there is apprehension by some to enter into this phase of life. The word Retirement suggests inactivity, slowing down, isolation, loneliness, and withdrawal from society.
Perhaps we can gain a better understanding of why such a negative spin was placed on retirement by briefly examining its history. The concept of retirement was introduced in North America a little over 100 years ago when the industrial revolution was taking place.
It was thought that elderly workers would slow down production. Job opportunities were limited, and older workers were preventing younger workers, with families to support, from much needed employment. Paying elderly workers to stop working seemed like a good idea. Initially, the US government paid the matured workers to step aside and withdraw from the labour force.
Social Security, 1935
Eventually, in the United States, the Social Security Act was introduced in 1935, whereby workers would pay into the program throughout their employment and eventually fund their own retirement.
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