Micro-retirement is a new trend where people, especially Gen Z, retire in phases during their working life rather than waiting for the conventional retirement age. The breaks enable one to travel, learn, or just rest, but they come with freedom and risks.
Burnout is a significant issue for Gen Z, and they prioritize having flexibility in their career. Unlike earlier generations, they won't wait until retirement to experience personal satisfaction. Micro-retirement provides a means to start a new venture, follow a passion, and stay mentally healthy.
A gap without proper savings can lead to financial stress. Experts recommend saving at least 25 per cent more than your anticipated expenses and having an emergency fund before quitting your job.
Regular career breaks leave gaps in your resume, and it becomes increasingly difficult to return to the job proffession. Employers may question your stability, and therefore upskilling and networking during breaks are required to remain competitive.
Micro-retirement is not a vacation; it is a financial and career planning. Have secure funds, health coverage, and a re-entry plan to make the transition a smart move, not a mistake.
