Early Retirement, factors to consider

T his article pins down the reasons that may lead to early retirement, the advantages and disadvantages and factors to consider when making early retirement decisions. Early retirement may be caused by the change in physical conditions such as accidents or else illness that obliges an individual to stop working since they are incapacitated to do the tasks assigned to them. Early retirement is an attractive decision to make when an individual does not enjoy doing his job and is in need to have a change. Also, early retirement is good for individuals who consider their employment as a big threat to their health and lifestyle . Early retirement is the best option from an employment before an employee is declared redundant and avoid unvoluntary dismissal from their current employment. Early retirement is caused by accumulation of wealth among the working individuals whereby they prefer retiring early and engage themselves in personal businesses or other activities. Also, early retirement is caused by household sizes where individuals with smaller households consider retiring early. Large households may deter an individual from retiring early since they consider salary from their employment as the only source to sustain their families. In some countries such as Germany and Netherlands socio-demographic factors may result into early retirement. In these countries, women may consider early retirement so as to benefit from the instigated early retirement packages meant for the women. Early retirement results to non-payment of redundancy pay since the employee don’t have any redundancy rights. Also, early retirees receive fewer pensions than they could receive if they worked up to the stipulated retirement age. Early retirement may result to non-payment of the state pension if the retirement is made before the required age set by a country for consideration in payment of state pension to the individuals. Early retirement may result from decrease in productivity making it impossible for an organization to keep an employee.