Today’s workplace is far from traditional. It’s dynamic and evolving, and it’s not just business as usual. From remote or hybrid work to flexible schedules, side hustles, new growth trends, microretirements, younger generations embrace change, and Gen Z is leading the charge.
The term may not be known to some employers and employees, but microretirement is not new. Academia has been taking sabbatical or leaves for decades for research and research.
Jillian Johnsrud, author of Retire, has written about mini-retirement for over a decade, and believes the term was popularized by Timothy Ferriss in his book The 4-Hour Workek more than 15 years ago.
Subscribe to Kiplinger’s personal finances
Be smarter, better informed investors.
Save up to 74%
Sign up for Kiplinger’s free e-newsletter
Remember profits and prosperity with expert advice on investments, taxes, retirements, personal finances and more – directly to email.
Profit and prosperity with the advice of the best experts – directly to your email.
So, what is a minor retirement? And why do workers welcome this trend of growth open?
What is a small retirement?
A microretirement refers to shortening regular breaks from work, which usually lasts several weeks or months. Vacations are usually accompanied by plans to travel, work on personal projects or to relax and then return to work.
Unlike traditional retirements, microretirement is not a permanent exit strategy, but a deliberate pause that is often chosen by younger workers, especially millennials and ZZ. This idea gained traction in response to burnout and evolving work-life balance priorities.
“Like retirements, many people are financially planning microretirements to ensure that they have the right funding to support their time away from work,” adds Steve Sexton, CEO of Sexton Advisory Group.
“For some people, microretirement means logging off completely and giving away time outside of work,” he said. “Others can choose to undertake remote projects during their microretirement to ensure that they are relevant to their field of work and/or have a stable flow of funds during this period.”
Who will be resigning to a small extent?
Generation Z includes individuals aged 13-28. Although most farther from retirement, this age group is beginning to normalize with an emphasis on excellent work-life balance. And with this, this new career trend will emerge.
As of 2025, millennials (born 1981-1996) account for the largest share of workers, accounting for 34-40% of workers. Gen X (born 1965-1980) continues at around 27-33%. Gen Z (born 1997-2012) consists of approximately 18-20% of the workforce, and the baby boomer generation (born 1946-1964) consists of approximately 7-12%. However, the number of baby boomers in the workforce can fluctuate.
“As a financial planner, I think there is a growing interest in micro retirement, especially as a proactive lifestyle choice for Z and millennials. Mindful Financial Partner Melissa Murphy Pavon says: Travel, caring for a family, whether you just reset or not, taking an extended break can be a smart and fulfilling strategy when it’s financially planned.”
Are you financially secured enough to tiny degenerate?
For many people, the main drawback of microretirement is the lack of a normal salary. In a recent survey by Allianz, 61% of respondents said they were confident in achieving their retirement savings goals. That number has been declining every year since January 2020, with 83% saying they are confident. Only 61% feel particularly confident in achieving their retirement savings goals.
Micro-retirement means leaving your salary, but not giving up on your goals. “By making the right plans, you can take a break without destroying your financial future,” said Michael Rodriguez, CFP of Equality Wealth.
“Maybe we need to increase our living expenses for six to 12 months. Maybe we’ll downsize for a year, cut back on other areas, or pay debts before we take a break,” Rodriguez said. “The purpose of microretirement is not to add stress, but to create a plan that gives permission to suspend without fear of falling behind financially.”
Do employers also embrace this growth trend?
According to Gallup, the increase in employees adopting microretirement is in line with the lowest workplace engagement rate in a decade. For businesses, employee exchanges can cost thousands of dollars, from recruiting candidates and interviewing to reduced productivity and training to time it takes to replace. Salary.com estimates that replacing employees costs half or twice the employee’s annual salary
While asking a company to adopt a workplace change may seem unpractical, it can help you remember that taking extended breaks from the workplace, such as minor retirements, is not necessarily a new phenomenon. Anyway, employee retention is the ability to retain people in the organization and reduce sales, which is extremely important for the company’s success.
To improve retention and retain young employees, businesses may want to rethink “running business as normal” by offering this type of break as a workplace benefit similar to matching 401(k) and health insurance, particularly as they demonstrate that younger workers are not worried about resignation or job hopping.
To prove that point, according to the U.S. Bureau of Labor Statistics, the average number of years wage or pay workers were with their employers was 4.1 to 3.9 years in January 2022. This is the lowest number since January 2002.
Micro Resignation vs. Sabbatical
Micro Resignation is a new spin in traditional sabbaticals. However, there is a difference. Firstly, micro retirement is not funded by your employer, so you can say goodbye to your salary while you are away. Sabbatical, on the other hand, can be either paid or unpaid, depending on the employer. Secondly, when you are micro-retired, you do not have the guaranteed job upon your return. If you are taking sabbaticals from work, the job you do when you come back is almost always there.
“Unlike sabbaticals, which are usually structured and paid by employers, microretirements are self-funded. You are completely out of work and are not guaranteed to be waiting for you afterwards.”
He said, “We need financial planning, and it’s not just the children of the trust fund. I’ve built up a buffer for deliberately leaving, even everyday professionals, those with modest pay.”
Why are Gen Z and Millennials accepting minor retirements and fires?
Essentially, the fire goal – financial independence, early retirement – the move is often to actively invest up to 75% of your income and save money. This means that if you play your card correctly, you may be able to retire early in your 30s or 40s. The goals for microretirement are roughly the same, but it involves a brief pause from work and is intended to ultimately return to the workforce.
“Many of the young clients I work with are not interested in climbing corporate ladders just for that. They want meaningful work and a life that doesn’t burn them,” explains Rodriguez. “Many people have grown older during the pandemic and either layoffs hit their parents or experienced firsthand mental health struggles. They have finally realized that ‘live’ is not the goal. ”
Rodriguez admits that some pursue fires with aggressive savings strategies, while others take a shorter, trace retirement break before refreshing themselves and returning to work. “I think both approaches reflect the same shift in thinking. They redefine success not just as titles and tenure, but also as flexibility, freedom and fulfillment.”
Adding an upward trend of returning to work after retirement or not resignation, making microretirement and fire even more attractive options. If people work well in the 70s (and beyond), younger workers may be further driven to plan regular rest areas rather than postponing all long holidays to later years.
“What I like about the microretirement conversation is reshaping success,” says Pavon. “It’s no longer about saving enough for the last third of your life. It’s about matching your life with your values throughout your life. And that’s a trend I’ll fully support.”
Pros and cons of minor retirement
There are minor reasons to quit, but there are also reasons that may not be ideal for everyone.
Strong Points
Cons
Young workers can still experience life on their own terms with their prime
You won’t earn a salary while you’re away, it can hurt you financially
Helps to establish a healthy work-life balance
Your job is not guaranteed upon your return
Provides opportunities to travel, stay with your family, or study new things
It may affect your chances of promotions or workplace salary increases
Helps improve mental health and prevent burnout
Your company may not support minor retirements
Allows research into career options
It can be difficult to keep your changes up to date at work
It can rekindle your passion for work
You may increase your workload on return
How to find work-life balance
The workplace has changed dramatically over the past decade, giving in to remote, hybrid and flexible work schedules, prioritizing employee mental health and well-being. These shifts occur at what appears to be a very rapid pace.
As the workforce evolves, there are expectations for workers as well. From conscious smoking cessation, sunlight and moonlight to gradual retirements, flexible retirements, and microretirements, normal business is nothing. And generally speaking, if you have a solid financial plan in place, that’s probably a good thing.
