The next element to examine is the offer itself and what you might be sacrificing by taking it. Assuming you're one of the lucky ones with a pension, you'll need to review it, any matching 401K funds, and even bonuses to accurately assess the package and its merits. For example, will you get a severance package? Severance packages are frequently offered to make early retirement more palatable. This amount could be based on years of service. However, will it cover you during a transition period? Also, how will it be paid-lump sum or periodic installments? Regardless, you'll most likely have to pay taxes on the amount you receive.

Depending on your age and eligibility, early retirement could also affect your Social Security benefit. Social Security is based on your average earnings over 30 to 35 years of work, so fewer years of work and the salary increases you might have received could produce a smaller benefit than planned. Finally, there's the whole emotional aspect of retirement. You may be relieved to end the day-to-day grind, especially if the going has been rough lately. However, it may feel like an abrupt end to what you considered a longer career. No matter which side of the fence you're on, you'll want to accept the circumstances and your reactions without letting them impact your decision.