Gen Z embraces ‘micro-retirement’ as new norm
NEW JERSEY, UNITED STATES — The concept of ‘micro-retirement’ is reshaping how Gen Z approaches their careers, contrasting with older generations reentering the workforce.
This shift is part of a broader change in workplace dynamics, where younger workers take breaks between jobs to focus on well-being and personal fulfillment.
Guy Thornton, founder of Practice Aptitude Tests, notes that social media has amplified the desire for younger generations to seize opportunities for memorable experiences while they are young and capable.
“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,” Thornton explains.
“Younger people prioritize mental health, personal fulfillment and meaningful experiences over a singular focus on career longevity and progression.“
Micro-retirement vs. traditional retirement
Micro-retirement involves taking time off to travel, pursue hobbies, or engage in passion projects. This trend contrasts with the traditional retirement model, where leisure is deferred until later years.
“Although some who participate in a micro-retirement may intend to stop working for an extended period of time, for those who want to travel while keeping their savings intact, the rise in remote working since the pandemic means that individuals can still maintain part-time or project-based work if they so desire,” Thornton adds.
Thornton suggests that taking breaks can boost overall retirement savings by allowing individuals to work longer and maintain a healthier work-life balance. However, it also means that some may work past the average retirement age, with 45% of respondents expecting to do so, according to a Standard Life survey.
The great retiree return
Meanwhile, baby boomers are returning to the workforce in large numbers, driven by financial pressures and a desire for social interaction.
Shanna Milford, US HR lead at IRIS Software Group, highlights that returning retirees bring generational diversity and valuable experience to the workplace.
“Retirees represent a seasoned talent pool, often requiring less onboarding and bringing skills that can fill critical gaps,” Milford notes.
“For industries experiencing labor shortages like accounting, where 75% of CPAs reached retirement eligibility in 2020, this is incredibly advantageous.”
Accommodating generational trends
Employers must adapt their practices to accommodate both Gen Z and returning retirees. This includes offering flexible roles, such as part-time or project-based positions, and addressing barriers like ageism.
Milford suggests providing tailored benefits for retirees, such as additional healthcare options or phased retirement plans. For Gen Z, employers should focus on creating environments that support their desire for work-life balance and personal fulfillment.
