Micro-Retirement

Micro-Retirement is a new way of life for Gen Zs across the globe who have spent little time in the workforce, yet enough to know they don’t like it. Unlike past generations, most of today’s 20-somethings live with their parents or have roommates which affords them the luxury of taking lengthy sabbaticals from their recently established careers. Others manage to self-fund their breaks by planning ahead and doing freelance work while traveling.

This Micro-Retirement trend spawned from social media posts that recommended taking career breaks to help avoid burnout and preserve a work-life balance. Apparently, long weekends didn’t offer enough time for them to catch a second wind. Now Gen Zs in the U.S., U.K., Australia, Ireland, and Singapore are stepping away from their jobs for weeks or months at a time to pursue other interests and recharge. 

Employers realize that by offering extended leaves as a benefit they can improve mental health and increase loyalty and retention. Yet some companies don’t have the luxury of holding jobs for workers who step away. Most cannot afford to offer paid sabbaticals. So, there are risks that come with taking a Micro-Retirement.

You don’t have to be in the wealth management field to realize Micro-Retirement is a concerning trend. When someone isn’t working, they aren’t able to save money and invest towards their future. Not to mention, being away from the workforce may make finding a new job challenging. The choices Gen Zs make today will impact their finances and lifestyle as they age. Good or bad.