In the following sentence:
Les personnes à la retraite
What is the meaning of "à" in the above sentence?
And, does the above sentence mean: "The people want to retire"?
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Retired people
Actually, to retire can be translated to partir à la retraite in french. But à has no direct translation.
It means retired people, as @Spadon wrote.
It may help you to think of people in retirement as an English phrase that more closely follows the French structure here, even though it is more common to refer to such people as simply retired.
La retraite is essentially retirement in English.