Jubilación vs. retiro
Both jubilación and retiro translate to "retirement" in English, but they focus on different aspects of this life stage. While jubilación is strictly related to the legal and financial process of finishing your working years and receiving a pension, retiro is a broader term that describes the general act of stepping away from a profession or active working life, regardless of age or financial benefits.
Jubilación
The word jubilación refers specifically to the administrative, legal, and financial milestone of retiring from the workforce, usually upon reaching a specific age and qualifying for a state or company pension.
Mi padre está esperando que aprueben sus trámites de jubilación.
(My father is waiting for his retirement paperwork to be approved.)
La edad de jubilación en muchos países ha aumentado recientemente.
(The retirement age in many countries has recently increased.)
Ella ahorró dinero toda su vida para disfrutar de una jubilación cómoda.
(She saved money her whole life to enjoy a comfortable retirement.)
La fiesta de jubilación de la directora del colegio será el próximo viernes.
(The retirement party for the school principal will be next Friday.)
El gobierno anunció reformas importantes en el sistema de jubilación estatal.
(The government announced important reforms in the state retirement system.)
Retiro
The word retiro broadly describes the personal decision or lifestyle change of withdrawing from work, a specific career, or public life, often used when someone stops working early, leaves a demanding profession like sports, or seeks a quiet life away from the daily grind.
El famoso tenista anunció su retiro definitivo del deporte tras la lesión.
(The famous tennis player announced his final retirement from the sport after the injury.)
Después de su retiro, decidió mudarse a una casa tranquila en las montañas.
(After his retirement, he decided to move to a quiet house in the mountains.)
Muchos artistas consideran el retiro cuando sienten que ya no tienen inspiración.
(Many artists consider retirement when they feel they no longer have inspiration.)
Su plan de retiro ideal incluye viajar por el mundo en un pequeño velero.
(His ideal retirement plan includes traveling the world in a small sailboat.)
El coronel pasó a situación de retiro después de cuarenta años de servicio militar.
(The colonel went into retirement after forty years of military service.)
Summary
In short, use jubilación when talking about the official, age-related retirement that involves pensions, paperwork, and the end of a standard working life. Choose retiro to describe the general act of stepping down from a career, including early retirement in sports or the arts, or when focusing on the lifestyle change of withdrawing from the active workforce.