What is a financial incentive a firm offers to encourage employees to accept an early retirement offer?

A financial incentive a firm may offer to encourage employees to accept an early retirement offer is a lump-sum payment or enhanced pension benefits. This can include a one-time cash bonus or an increase in monthly retirement benefits for a specified period. Such incentives aim to make early retirement financially attractive, helping the firm reduce its workforce costs while providing employees with a compelling reason to retire sooner than planned.