Two issues were analyzed--the changing characteristics of early pension recipients and the costs of early retirement. The analyses covered men and women aged 50 and older and were based primarily on data from the Census Bureau's March 1984 Current Population Survey. Findings showed that the percentage of the population receiving employer-sponsored pensions at ages younger than 65 had increased rapidly. Individuals with employer-sponsored pension income had much lower labor-force participation rates than nonrecipients of the same age and sex. While the majority of early pension recipients who did not work appeared to be voluntarily retired, a significant minority below age 62 had retired due to disability or poor health. Early retirement represented a potentially significant loss in federal tax revenues. Some recent legislative changes reduced incentives for early retirement and removed obstacles to older worker employment. Additional proposed changes would further remove some financial incentives to retire early in public and private plans. The importance of the adoption of further public policies to encourage later retirement was seen as depending not only on future economic growth but also on unforeseeable economic or demographic circumstances that might alter the current view of what policies will be needed in the next century. (Appendixes include additional data and information on methodology.) (YLB)