Why do employees choose to retire early? A qualitative exploration of voluntary retirement decisions among banking employees

Purpose Early retirement has become an increasingly common pathway for late-career employees, yet the motivations driving such decisions remain underexplored. This study provides new insights into voluntary retirement decisions in the Indian banking sector by examining the psychological, social and organizational factors that influence employees' decisions to opt for voluntary retirement schemes (VRS). Design/methodology/approach A qualitative interview study was conducted with 50 former banking employees who opted for VRS. Semi-structured interviews were thematically analyzed using NVivo 14, and seven key themes were identified: adaptation to organizational change, dissatisfaction with the organization, organizational downsizing, external and social influences, sacrificial loyalty, personal aspirations and commitments and health-related considerations. Findings Results indicate that VRS decisions are shaped by workplace challenges, career advancement barriers, forced relocations, peer influence and health concerns. These factors often intersect with personal values, aspirations and family responsibilities. For some employees, VRS provided relief from stress and unsupportive environments, while for others, it created opportunities to pursue deferred goals, prioritize caregiving or support organizational needs during restructuring. Originality/value This study addresses a qualitative gap in retirement research by focusing on VRS within the Indian banking sector, thereby contributing to the global understanding of career exits as socially and organizationally embedded processes.