The Micro-retirement trend explained: Can you really retire in your 20s?
Are you going to retire at 25? This might sound crazy, but an emerging trend among Gen Z and millennials of the world shows it can be done. It’s called micro retirement. Unlike traditional retirement, which one usually takes after working for decades of work, micro retirement means taking planned breaks from work for weeks or even months to charge up, travel, or go after their passions. This lifestyle choice is shaking up the way younger generation views work-life balance.
What is micro retirement?
The term "micro retirement" was coined by entrepreneur Timothy Ferriss in his 2007 bestseller The 4-Hour Workweek. It implies taking longer breaks from your career as against a short holiday or a sabbatical.
Unlike a sabbatical, which is usually employer-approved, micro retirement is completely self-driven. You decide the time, place and duration for your break but without any guarantee of a job when on your return. This flexibility is exciting but comes has a flipside as well.
Micro retirement allows you to step away from your daily grind and focus on yourself; whether that’s traveling to new places, upskilling yourself, working your mental health, or simply taking a breather from work life. It’s about breaking up your career into chunks of “work” and “rest” rather than slogging till you retire at 60.
Why is micro retirement is buzzing?
The Gen Z and millennials are changing what work means. They are against the idea of putting life on hold till the retirement age. Instead, they want a better work-life balance now. This transition is driven by several reasons:
- Rising Stress and Burnout: In India, over 77% of urban youth is stressed and as per a CII report 62% of Indian employees face burnout. This is 3 times the global average of 20%. This is pushing more young employees to take breaks before long-term health and happiness are put at stake.
- Changing Work Culture: Remote work, freelancing, and gig economies offer a flexibility which making it easier to take temporary breaks, work anytime, anywhere without losing work opportunities.
- Desire for Experiences: Younger generations weigh experiences way above possessions. They want to travel, explore, and learn beyond their office jobs.
Before you plan your micro retirement
Taking a micro retirement isn't an easy feat and need planning and preparing. Here are important things to note:
- Financial Planning: Before going down the micro retirement route, have savings for basic expenses like rent, bills, groceries, and travel. Keeping a financial buffer is crucial as a regular income won't be coming your way during the break time.
- Alternate Income Sources: Taking up a side hustle, freelancing, or creating alternate income streams can help keep you financially stable during your break.
- Employer Communication: Some companies may allow flexible work or even offer unpaid leave if you discuss your plans in advance with the higher ups.
- Plan for Return: Keep networking and updating your resume during your break. Set aside atleast an additional 28% savings in case it takes time to find a job afterward.
Is micro retirement for you?
Micro retirement doesn't come without risks. There’s no job security, and too much time away can impact career growth. However, for many young employees, the mental health and personal growth are a priority. It’s a big step towards reshaping life and working on your own terms.
In a world where burnout is becoming a norm micro retirement gives a new outlook on “work hard, rest hard.” Would you consider taking this leap to reclaim your time and live more fully?
