Have you heard of microretirement? Well, if you are over 40 years old then you probably have not. This new form of temporary – or mini – retirement is something for Millennials and Generation Z people.
A microretirement is a concept where individuals, typically younger professionals, take extended breaks from their careers to pursue personal interests, travel, or simply recharge, before returning to the workforce. It’s like a mini-retirement taken during one’s working years, rather than at the end of a career.
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Particularly among individuals in their 20s and 30s, priorities are shifting. Rather than focusing solely on saving for a far-off retirement, they desire to take breaks in the present, while they are young and can maximize their enjoyment.
Unlike traditional retirement, a microretirement is not a permanent exit from the workforce. Individuals plan to return to their careers or pursue new opportunities after a defined period. Microretirements are often taken with specific goals in mind, such as traveling, pursuing a hobby, spending time with family, or addressing burnout. The length of a microretirement can vary depending on individual circumstances and goals, ranging from a few months to a year or more.
High stress levels among younger adults, aged 18 to 34, are contributing to a rise in the popularity of microretirements. The American Psychological Association (APA) reports that this age group experiences an average stress level of six out of 10, compared to 3.4 for those 65 and older. This increased stress makes them more prone to burnout, prompting the desire for a break to recharge.
“I’ve recently decided that working for three years and then taking a year off is how it’s going to be for me,” a teacher who has started setting aside money for her mini-retirement in a high-yield savings account, told The Cut.
“I did this. It changed my life. I’ve decided that I will take a year off work every fifth year (4 years working/1 year off) for the rest of my life,” said another Gen Z-er.
“With other people my age, there’s so much pressure to chase promotion cycles and raises, and everyone is so burnt out,” Brittany Foley, a 26-year-old who lives in Boston, told The Cut. “I figured this is actually the best time to take time off work, when I don’t have kids or other dependents.”
