Early retirement: what you need to know

Early retirement is the dream of many people, but it may encounter difficulties in practice. This article will introduce you to the relevant policies and precautions of early retirement to help you better understand this topic.

Policy stipulation

Early retirement is a policy before the establishment of the old-age insurance system. According to the second paragraph of Article 1 of Guo Fa [1978] 104, eligible employees can retire early. However, the actual implementation needs the approval of the industry authorities.

Social security department approval

Now the social security department is very strict about early retirement. If you really want to retire early, you need to submit an application for approval by the social security department.

Pension calculation method

After the establishment of the basic old-age insurance system in China, the way of calculating and distributing pensions has changed, which is not so closely related to the length of service, but closely related to the number of years and the total amount of employees' contributions. Although you are eligible for early retirement, you may encounter difficulties in practice.

Benefits of late retirement

Due to the adjustment of pension calculation and payment methods, employees now tend to postpone retirement because they can pay more insurance premiums and get higher pensions after retirement. From the company's point of view, they also hope that employees can retire as soon as possible to reduce the wages paid.