As older generations like Baby Boomers and Gen X continue to face challenges in retiring, younger employees from Gen Z and Millennials are embracing a new trend: “micro-retirement.” This approach allows them to take short breaks from their careers to focus on personal well-being and work-life balance.
While far from reaching retirement age, many young workers are rejecting the traditional idea of working for decades without taking significant breaks. Micro-retirement is when an employee takes a break from their job for a few months or even years, whether it’s to go on vacation, pursue a hobby, or simply recharge to avoid burnout.
For some, these breaks offer a chance to explore personal passions outside of the workplace, while others use the time to start a side business. Jes Osrow, from HR consultancy The Rise Journey, describes micro-retirement as a “flexible concept” that varies depending on individual needs and goals.
In a 2023 Pew Research Center survey, only 44% of workers under 30 reported being very satisfied with their jobs, compared to 67% of those aged 65 and older. The pressure of modern work has taken a toll, especially on younger employees. A Gallup report found that only 50% of workers reported thriving in their personal lives, marking the lowest level since the survey began in 2009.
The pandemic and the shift to remote and hybrid work models have significantly affected younger generations, particularly Gen Z. A Cigna survey revealed that Gen Z workers are often the most underpaid and the most stressed. Millennials, on the other hand, are experiencing high levels of burnout, particularly in middle management roles.
Burnout, a condition where stress and exhaustion negatively impact both work performance and overall well-being, is becoming more common. A study found that 7% of professionals have been seriously affected by burnout, which can lead to serious health issues such as coronary artery disease, hypertension, depression, and anxiety.
Factors such as job changes, team dynamics, and organizational shifts can contribute to burnout. Experts emphasize the importance of replenishing physical and emotional energy through practices like good sleep, exercise, social connections, and mindfulness techniques such as journaling and meditation.
Meanwhile, older workers are also facing challenges. Gen X employees, in particular, are less financially prepared for retirement. With the rising cost of living, many find themselves working longer than expected. Baby Boomers, despite their wealth, are also hesitant to retire due to financial concerns, with the “magic number” for retirement increasing faster than anticipated.
For those whose companies don’t offer sabbaticals, career coaches suggest making long-term financial plans to ensure stability during breaks. They also recommend staying updated on professional skills to make re-entering the workforce easier after a micro-retirement. Spending 5-7 hours a month on skill development can help maintain employability.
Additional advice includes reducing monthly spending by 25-35% before taking a break, staying connected with professional networks to find new job opportunities more quickly, and allocating 15-25% of investments to conservative options during the break to ensure financial security.
