VRS (Voluntary Retirement Scheme) is an employer programme that offers employees a lump sum and sometimes pension benefits in exchange for leaving before normal retirement age. It can accelerate FIRE if the package is attractive and you’re close to your FIRE number.

Key Considerations

• Package terms — Tax treatment of the lump sum; gratuity, leave encashment, and provident fund components.
• Timing — Accept only when you’re financially ready; don’t let a one-time offer pressure you into early exit without a plan.
• Healthcare — Employer health cover usually ends; arrange health insurance before leaving.

For FIRE

VRS can be a catalyst if the lump sum bridges your corpus gap and you’ve planned for tax-efficient withdrawal and post-retirement expenses. Compare with continuing to work and building corpus through SIP and NPS.