Strategy
How to Retire Early — and Negotiate Your Exit
Bridge strategies, severance negotiation, and the moves that make leaving early possible.
7 min read
Can you bridge the years before benefits start?
Early retirement is really a bridge-building problem: covering the gap between your last paycheck and when Social Security and Medicare kick in.
- ◆Rule of 55: if you leave your job in or after the year you turn 55, you can withdraw from that employer's 401(k) penalty-free.
- ◆72(t) / SEPP: lets you tap an IRA early without penalty via fixed periodic payments.
- ◆Cash and Roth contributions: your Roth contributions (not earnings) can be withdrawn anytime, tax- and penalty-free.
Negotiate your exit — don't just quit
If your employer is restructuring or you're open to leaving, you may have more leverage than you think. A negotiated exit can mean months of pay and benefits.
- ◆Ask whether a voluntary separation or early-retirement package is available.
- ◆Negotiate severance, extended health coverage, and payout of unused PTO.
- ◆Get any offer reviewed before signing — especially non-competes and release clauses.
Time your Social Security claim
Retiring early doesn't mean claiming Social Security early. Every year you delay past 62 (up to 70) raises your monthly check by roughly 7–8%. Spend down savings first if you can — it's often the best 'investment' available.
This is educational information, not financial, tax, or legal advice. Rules and limits change year to year — confirm specifics for your situation with a qualified professional.