The trend of micro-retirement is gaining popularity in the United States
The word “micro” means small, but there’s nothing small about micro’s popularity. Everything seems to be going micro this year! I’ve written about micro-breaks, micro-chillers, micro-steps and micro-self-care. Now, Gen Z has popularized another micro trend: micro-retirement, a mental health detour on their career path. Disillusionment and a craving for more flexibility are pushing high-potential employees out of the workforce, with 91% of industries seeing a spike in top talent departures. Micro-retirement has become a popular landing place for employees seeking to manage job stress and gain work-life balance.
The Micro-Retirement Trend On The Rise
Most of us think of retirement as something we wait 40 years to enjoy, receive the proverbial gold watch and sleep-in during mornings. But that image has become an empty promise for many retirees, embracing a modern version of retirement: micro-retirement–a planned, extended career break from work to rest, travel or explore personal and career goals.
I wrote about this topic for Forbes.com last year. Instead of waiting until retirement to travel the world, Gen Z are taking micro-retirement between jobs to have time out from work stress, paving the way for the next generation of workers by continuing to prioritize a healthy work-life balance. They are to be credited, at least partially, for normalizing the belief that we don’t have to drive ourselves into the ground to be effective in our jobs, that burnout is not a badge of honor for hard work and that work-life balance is essential for our mental health.
Science shows when we take time out to rest and relax, we’re more engaged and productive at work tasks. Science-backed studies, reveal that simple solutions like micro self-care–essentially the same as self-care, but in small, quick doses–prevents burnout and keeps careers afloat. Plus, taking micro-breaks–short breaks throughout the day–counteracts fatigue, boosts well-being and keeps stress from becoming cumulative.
The 5 P’s On How To Take A Micro-Retirement
A new SideHustles.com study of 1,000 American workers reveals that 54% say micro-retirement helps prevent burnout and boosts well-being. One in ten intend to take a career break or micro-retirement in 2025. The best way to understand how a micro-retirement works is to consider the five P’s.
1. Purpose. A micro-retirement isn’t an escape from a miserable job, overbearing manager or dream vacation. It has scaffolding and structure that starts with a purpose of why you want to take a career break: to recharge your batteries, recover from burnout, learn a foreign language, have self-reflection, contemplate your career path or pursue a hobby.
2. Plan. Once you know your purpose, you develop your intentions: how much time you plan to take off, how you will use it and the actions to achieve your purpose. Otherwise, you could fritter the time away. You’re specific about how you will recharge your batteries, recover from burnout or learn a foreign language, etc. A friend of mine, for example, took a career break for language indulgence in Costa Rica to learn Spanish. The respondents in the SideHustles.com study say they would take an average of four months off for a micro-retirement.
3. Pay. How will you financially support yourself during the break? According to the study, micro-retirees intend to save around $15K before taking a career break. The majority (67%) say they will rely on savings, with over 36% funding their micro-retirement with a side hustle or freelance work.
4. Pitch. The next step is to discuss your proposal with your employer. You might have to negotiate the time frame and the details of returning or not returning to your position. When I was a professor at the University of North Carolina at Charlotte, I took a year off to write a book. The Dean of my college hired someone to replace me for that year. But not all employers are open to the idea of a micro-retirement.
5. Ponder post-micro-retirement. After a micro-retirement, will you want to return to your position, continue with your side hustle or find another more meaningful position? You might not know until midway or after the break, but it’s something to ponder. Over half (52%) of study respondents say they plan to return to their current employer, 13% intend to find a new job and 35% are undecided.
Why Micro-Retirement Can Be A Red Flag For Employers
Experts acknowledge that, while the trend sounds appealing on the surface, it’s actually a red flag for employers. “Micro-retirement is a reflection of the broader trends in today’s workforce, such as burnout, disillusionment and a desire for greater flexibility and purpose,” says Phil Willburn, Workday’s VP of people analytics. Willburn, a believer in work flexibility, references Workday’s latest Global Workforce report, which shows high-potential employees leaving at alarming rates and promotion opportunities lagging in many industries.
“Job applications are growing nearly four times faster than openings, creating a competitive environment that leaves many workers feeling undervalued or stuck,” he told me by email. “In that context, it’s no surprise that some employees are opting out, even temporarily, when they don’t see a clear path forward. Micro-retirement becomes a form of agency in a job market that all too often feels uncertain.”
Willburn advises that to stem the tide of micro-retirement, employers must create a culture of growth, invest in the employee experience and ensure that people feel connected to the ‘why’ behind the work. “In today’s evolving workforce landscape, meaningful work, flexibility and recognition are non-negotiables for keeping high-potential talent engaged and thriving,” he argues.
Paul Farnsworth, president of Dice points out to me another caveat, especially for tech professionals. “Tech professionals who are feeling burned out and have earned enough from their specialized skills are taking temporary or micro-retirements decades ahead of their expected retirement date, but taking one of those also requires the confidence that your skills will still be relevant when you re-enter the industry.”
Willburn suggests that employers address these challenges by going beyond basic perks and invest in what really matters, which he describes as “meaningful work, sense of accomplishment, career growth and trust in the organization’s leadership and strategy.”
A Final Wrap On Micro-Retirement: ‘A Must-Have’
Ed Huang, career expert at SideHustles.com, told me by email that his research team was struck with how quickly micro-retirement is gaining traction. But he says what really stands out is that 75% of workers–especially millennials and Gen Z–want employers to offer structured options like unpaid sabbaticals or extended PTO. “With more than a third planning to fund their break through side hustles or freelance work, it’s clear people aren’t waiting for workplace permission—they’re carving out rest and personal growth on their own terms,” he concludes. “For employers, that’s a sign: offering flexibility isn’t just nice to have, it’s becoming a must-have.”
