What is Micro retirement and why the career trend is popular among Gen-Z?

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Micro-retirement is a recent concept allowing people, specifically from the Gen Z generation and younger, to take short leaves from their employment to focus on personal interests and mental health to improve their general well-being. This trend heralds a departure from the usual model of continuously working for years until retirement age.

Micro-retirement is a planned leave that can range from a few weeks, up to several months or even years, wherein one works on other activities outside of professional life.

Such leaves consist of traveling, pursuing hobbies, volunteering, and even starting side businesses; unlike traditional retirement, which happens at the tail end of a career, micro-retirement is interjected into their working lives

Guy Thornton, founder of Practice Aptitude Tests, told Forbes:

“Whether it’s time off to travel, to have a well-deserved break from working or to take up other passions, the micro-retirement trend is the latest buzz in the world of corporate work.”

“Younger people prioritize mental health, personal fulfillment and meaningful experiences over a singular focus on career longevity and progression.”

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The philosophy behind micro-retirement

The philosophy of micro-retirement is against the age-old notion that enjoyment and leisure should be put off until old age.

People adopt this approach due to inspirations from Tim Ferriss' The 4-Hour Workweek where they create environments that unite work responsibilities with leisure activities and self-improvement objectives.

The goal here is to experience increased life fulfillment even though you will stay actively involved in your career.

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Popularity among Gen-Z

Changing workforce dynamics

Gen Z workers increasingly prioritize experiences and work-life balance over traditional metrics of career success. According to a 2022 Gallup report, 65% of Gen Z and Millennials give more priority to personal well-being than prior generations.

The new flexible work arrangements and gig economy have accelerated this shift since employees can easily take breaks without affecting their future career prospects.

According to 26-year-old Brittney Foley, who represents micro-retirement:

"With other people my age, there’s so much pressure to chase promotion cycles and raises, and everyone is so burnt out."

Mental health concerns

As a result of the mental health crisis due to the pandemic, young workers are searching for ways to prevent burnout. Micro-retirements help such people recover and return to work with a lot of vigor and creativity.

A study finds that those people who take a sabbatical come back happy and productive in the workplace.

TikToker Anais Felt revealed to People magazine that she has been in micro-retirement from her corporate job for six months:

“I have never felt better. I’ve never felt healthier. I’ve never more rested. It’s been amazing.”

Cultural influences

Social media such as TikTok have been at the forefront of popularizing the concept of micro-retirement to the younger generation.

People post their experiences and advocate for the need to take time off from work to seek mental rejuvenation and personal satisfaction. This new culture is that of making the most of youth and not waiting to enjoy it later.

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Benefits and disadvantages of micro-retirement

Benefits

Better mental health: There is a reduced chance of burnout and stress since one has a break-off time.

Personal growth: Time away enables time to develop another hobby or improve a skill.

Work-life balance: Micro-retirement promotes the positive assimilation of personal life and career goals.

Challenges

Financial factors: Retirement funds are impacted by taking time away while one's future earning capacity will be weakened if not planned.

Career re-entry: Often, individuals face challenges re-entering the workplace after long periods as industry changes have accelerated.

Skill relevance: During an extended period away from the workplace, it is difficult to stay current with industry-relevant skills.