Early retirement is the ability to retire before the normal retirement age specified in a pension plan or employment contract. The normal retirement age is typically the age at which an individual becomes eligible to receive the full benefits of a pension plan, and it may vary depending on the type of plan and the individual’s circumstances.
Retiring early may be an option for individuals who are unable or unwilling to continue working until the normal retirement age. It may also be an option for individuals who have sufficient retirement savings or other sources of income to support themselves during retirement.
However, it’s important to note that retiring early may come with some trade-offs. For example, individuals who retire early may receive a reduced pension benefit, as the benefit is typically based on the number of years of service and salary earned. Additionally, individuals who retire early may have fewer years to save for retirement, which could impact their financial security in the long term.
It’s important for individuals to carefully consider their options and the potential consequences of early retirement before making a decision.