Back to School Basics: Retirement

Why do grownups keep talking about retirement? Ashleigh Bretzlaff asks Morningstar's Ian Tam.

Ruth Saldanha 28 August, 2023 | 2:58PM
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You can watch the entire series here.

Ashleigh Bretzlaff: Hello. I'm Ashleigh Bretzlaff, and this is Ian Tam. Grownups talk about retiring a lot, especially when they're old. How does retirement work? I'm asking Ian about it today.

Ian, why do my parents keep talking about retirement?

Ian Tam: Ashleigh, that's a great question. Thanks for asking. So, probably in your regular life, you got to do some sort of chores during the week and then in exchange you get a bit of an allowance, right? So, imagine if you never had to do chores again. That's basically what retirement is for adults. So, what happens is, adults have to work over their life to save enough money that they don't really have to do chores anymore. And that's essentially what retirement is. And many adults definitely look forward to retirement, especially when they get a bit old.

Bretzlaff: How do I retire?

Tam: That's a great question. I'd like to know as well. But I think the concept is that you try to save as much money as you can early enough and invest that money so that it grows over time. So, when you reach the age of retirement or when you have enough that you don't need to work anymore for money, then you can essentially stop working and focus on other things in life.

Bretzlaff: What do people do in retirement?

Tam: Yeah, a great question. So, I know that you're in the volleyball. Imagine you could play volleyball all the time. That's certainly an option. You can do that. But many adults, when they retire, they pursue their hobbies like sports and other things, they do some volunteering, so maybe helping out others as well as spending time with friends and family. So, lots of different things you can do in retirement to enjoy your years.

Bretzlaff: Thank you, Ian. For Morningstar, I'm Ashley Bratslav.

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Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Follow her on Twitter @KarishmaRuth.


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