Gen Z, Millennials Redefine Retirement With Work-Retire-Realign-Repeat Model: HSBC 2025 Report

Retirement is no longer associated with a certain age, and thus, remains no longer a one-time event. People are now exploring ways to earn money while also paying attention to the quality of life. According to HSBC’s 2025 report ‘The Rise of Multi Retirements’, released this month, affluent Indians are adopting a lifestyle of multiple planned career breaks or “mini retirement” throughout their working lives. This trend is changing the way retirement is looked at.

The report highlights that the shift in retirement mindset shows that wealth is no longer being defined by material accumulation but by the quality of life it enables. Around 50 per cent of Gen Z in India do not value quality of life more than material accumulations, emphasising work-life balance as the ultimate mark of success. Notably, the study surveyed over 10,000 affluent investors across 12 markets, including more than 1,000 from India. It shows that people are breaking away from the traditional work-retire way of life and opting for the work-retire-realign-repeat model. 

Mini And Multi Retirements

The report defines mini retirement as a substantial break from career lasting from a few months to several years. A multi-retirement mindset means that one takes multiple mini retirements over a lifetime.

The trend is not limited to one generation, says the report. For example, Gen Z is very optimistic, often funding breaks in working years through the digital income streams, whereas Gen X and Millennials tend to rely on rental income, savings, and pensions. Notably, 87 per cent of the respondents who opted for mini retirement confirm improvements in their overall quality of life.

Around 74 per cent of Indian respondents reported that mini retirement has positively impacted their lives.

According to the report, affluent Indians plan to take about two to three such retirements over their lifetime, typically every five to six years, starting from their mid-40s to early 50s. In India, many prefer taking a mini retirement for six to 12 months, to use them meaningfully instead of taking shorter vacations.

Motivations And Aspirations

While many Indians are inclined to take a mini retirement with a great emphasis on spending quality time with family, focusing on their physical and mental health, and travelling, for Indian millennials, Gen Xers, and baby boomers, family remains a priority, with many having children and elderly parents.

The reason for taking mini retirements is to pursue their lifelong passion or reassess their career goals during these breaks. However, where the older generation’s main motive is spending time with family, Gen Z prioritises career experimentation and exploring passions.

The report says that on average, affluent Indian investors save around USD 418,000 before taking a mini retirement. However, they plan to spend approximately USD 371,000 during the break.

It reveals that Indians primarily rely on their personal savings, including interest on income, dividends, and capital gains, to fund their mini retirement. Some of the less common sources of income include part-time freelance work and renting out property. Financial support from family and pension comes at the end to fund a mini retirement.

Indians' Mini-Retirement In The Global Markets Context

Compared to the other markets, Indians face higher thresholds for financial corpus, reflecting the rising cost of living and high aspirations. Further, they tend to spend their mini retirement time within the Asia-Pacific region or at home.  

The preference for mini retirement shows a preference for work-life balance. The cyclical break model promotes well-being, growth, and a balance between work and life, moving away from the old notion of retirement as a single one-time event.