Resigning. There is no "retirement" for popes, but he will repair to the monastery at Castel Gandolfino in Rome. Canon law requires each diocese to provide support and housing for its priests after they retire, though the details of priests and bishops pension plans vary from country to country. His health care will continue to be covered as part of the Holy See, and I suspect his living expenses and reasonable travel expenses will be part of the package. I suspect the security will be included too.
10 months ago
Last edited at 10:34AM on 2/13/2013
It is probably more a matter of semantics, but since the question was asking if he was retiring or resigning, it should be noted that he is resigning since Catholic canon law allows no accommodation for retirement from the papacy. Death or resignation are the only way to leave the papacy once installed. (For more information about papal resignations, see http://atheism.about.com/od/popesandthepapacy/a/resignations.htm -- a list of resigned popes is found on page two of the article.)