Early retirement refers to the decision to leave the workforce before the traditional retirement age, often defined as 65 years old in many countries. This choice can be voluntary, driven by personal goals such as pursuing hobbies, travel, or spending more time with family. Alternatively, it can result from circumstances like company downsizing or health issues. Individuals opting for early retirement typically rely on savings, investments, pensions, or alternative income streams to support themselves since they may not yet qualify for full government benefits like Social Security.
For example, consider an employee who decides to retire at 55 after accumulating sufficient savings and a stable pension. This person might spend their early retirement years traveling the world or starting a small business, enjoying a lifestyle free from the demands of a full-time job.
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