Introduction The massive retirement and the increasing trend towards earlier retirement have been the most two striking worldwide phenomena. The average age for a person to retire is still declining despite the rising life expectancy (Bound, 2007). For example, the average retirement age for men in US has declined from 68.5 to 62.6 in the last five decades; and the women age for retirement declined from 67.9 to 62.5 years. The average age retirement was 61 years in Canada and China 51.2 years by 2000 (Gendell, 2001). Voluntary early retirement is granted to individuals only with the approval of the Office of Personnel Management (OPM); it is under the federal law and agencies. This option is provided by the OPM with the aim of assisting agencies to restructure their work force. There are laid down requirements for one to qualify for voluntary early retirement. For example, for those employees covered under CSRS, one is required to be at least 50 years with 20 years of federal service, or at any age for those who have attained 25 years of federal service. The increasing numbers of people retiring at earlier ages are making the health insurance and the social security systems to get worried. Research shows that US social security system is likely to pay out much money in benefits than it collects from payroll taxes by 2018. In other countries such as China, the security system will not be sustainable unless the mandatory retirement age is increased. Whether the increase in early retirement is socially or individually beneficial, it has an impact on health outcomes (Boldrin, Dolado, Jimeno & Perrachi, 1999). Reasons for Early Retirement Researches carried out by various groups point out too much generosity by the social security as the major reason behind early retirement. Studies indicate that these generous benefits have resulted to intensive early retirements. They argue that the benefits and the contributions are high (Chong & Jung, 2009). Technological progress is another cause identified for early retirement. The introduction of new goods, machines and production methods elude the need for human capital. Technological advances have made it possible for some human labor to be effectively replaced. Employees who are replaced by technology are relocated to other tasks they may not like and thus they may end up retiring early. Other reasons identified by the researchers include fears by the employers that the elderly employees might develop reduced productivity through their decreased interest with their work and inability to advance their skills. Others believe that poor relationship with co workers results to early retirement. More so, employees whose services are no longer required by the industry may opt for early retirement. It has also been shown that those who have lower education backgrounds are more likely to ask for early retirement; researchers have argued that people with lower education backgrounds are reluctant to advance their skills through further learning and thus this lowers their productivity and make them less willing to work (Ahituv & Zeira, 2001). Various reforms have been undertaken by the pension scheme to reduce the rate of early retirement. These include penalties awarded for every early retirement applied for and awarding of more credits to those who delay in retiring. Other reasons connected to earl