The Indonesian military is currently faced with a situation in the colonel's career bottleneck so that there is the potential for overqualification of military employees working in government institutions. This symptom can lead to the situation of early retirement for military employees in civilian settings. As many as 157 colonels and lieutenant colonels working at the Ministry of Defense of the Republic of Indonesia were involved in a study to find out how the perceived overqualification and leader-member exchange was independently related to job satisfaction and the early retirement intention. The results show that leader-member exchange has a positive effect on job satisfaction but has positive effect on early retirement intention. Meanwhile, the perceived overqualification affects only employee job satisfaction, not on early retirement intention. Job satisfaction influences early retirement intention. Even so, leader-member exchange does have a negative effect on perceived overqualification. Policies aimed at improving the quality of subordinate superiors' relationships are needed to prevent early retirement intentions of employees who experience overqualification.