Arrangements in educational institutions for voluntary early retirement programs are discussed. Retirement at any age can be a profound and stressful lifetime change; and it can also represent a welcome transition into newly satisfying and rewarding opportunities. The focus is on: mandatory retirement (exceptions and the new meaning of "early"); tenured faculty and early retirement (faculty perspectives); current retirement age patterns; general types of early retirement programs; health insurance coverage; defining eligibility (age discrimination requirements); early retirement financial incentives (the defined contribution pension plan, elective section 403(b) tax-deferred annuities, special elections for tax-deferred annuities, section 457 deferred compensation plans, section 457(f) deferred compensation plans, severance pay and hand-shake agreements, and defined benefit plans). The pros and cons of an early retirement program will require careful consideration by the college and by individual faculty and staff. A personal financial assessment is the first step for an individual in evaluating the adequacy of an early retirement incentive plan designed to provide additional retirement income. Employers must encourage financial planning at an early stage. Contains 18 references. (SM)