Definition - What does Early Retirement mean?
Early retirement means leaving a job before the age of 65 in the US. The age of 65 is the retirement age as defined by Social Security. If the person leaves his or her job before that age, retirement benefits are reduced.
It could also refer to a company offer for its employees. The package for an early retirement plan from a company is usually more attractive financially compared to the money a person receives if he or she just voluntarily resigns prior to retirement age without a company early retirement plan.
Insuranceopedia explains Early Retirement
If a person resigns before the retirement age, he or she will get less from retirement benefits. Medicare does not offer health care to a US citizen if he or she has not yet reached the age of 70.
Worries about health insurance among early retirees might have been greatly eased by a law that was passed under the administration of Barack Obama. The Affordable Care Act that was passed in 2010 has restricted insurance companies from being discriminatory in terms of age or health. Health insurance can now be availed of regardless of one's age or prior health conditions. Policies will not be charged more because of the just cited reasons. Would-be insurers with insufficient income will also be subsidized by government so that they can buy health insurance.
- Affordable Care Act
- Consolidated Omnibus Budget Reconciliation Act of 1985, 1986, and 1990 (COBRA)
- Employee Retirement Income Security Act of 1974 (ERISA)
- Permanent Disability
- Summary Plan Description
- Years of Service
- Retirement Annuity (IRA)
- Retirement Benefits
- Individual Retirement Annuity
- Pre-existing Condition