Early Retirement Vs. Late Retirement: Meaning and Differences

What Is Early Retirement?

What Is Late Retirement?

What Are the Differences Between Early and Late Retirement?

The main differences between early retirement and late retirement are in the table below:

Point of Comparison

Early Retirement

Late Retirement


Retiring before the normal retirement age.

Working after the normal retirement age and retiring much later.

Minimum Age Limit

The minimum age limit is approximately within the late 40s.

The minimum age limit is atleast your early 70s.

Risk Factor

Early retirement is usually risky.

Late retirement is not risky.

Reason of Choice

To fulfil any other life goal and maintain a stress-free life post retirement.

Due to insufficiency of corpus or to get rid of boredom that may come with retirement.

Corporate Benefits

Here, the benefits are quite restricted.

Here, you can be open to many benefits

Work Atmosphere

Usually an unhealthy and strenuous working atmosphere, which creates mental pressure.

Healthy work atmosphere with proper utilisation of knowledge and competence of the employees.

work Motivation

Here the work motivation is usually low.

Here the work motivation is very high.

What Are the Things to Keep in Mind While Planning a Retirement?

FAQs About Early Retirement and Late Retirement

What are the benefits of late retirement?


The primary benefits of late retirement are as follows:

  • Earn more than sufficient retirement corpus.
  • More time to pay off debts.
  • Continue getting employment benefits.
  • Eligibility for a more significant amount of pension.

Is it better to take early retirement or wait?

If you opt to retire early, your benefits will get reduced by a small percentage, but you will also get the opportunity to explore new opportunities in life. On the other hand, if you choose late retirement, your post-retirement benefit amount will increase. Hence, the choice depends on you and your requirements, which will finally define your results.

What are the consequences if you do not plan your retirement properly?

 If you take your retirement decisions without planning it properly then you may face problems in managing your financial requirements after so. It can also happen that you are burdened in debts for certain unavoidable situations, especially medical issues. Moreover, settling for retirement after planning it properly will let you enjoy a peaceful old age.