‘Micro-retirements’ (also referred to as mini-retirements or adult gap years) are quickly gaining popularity among the UK’s millennial and Gen Z workforce. As explained by The Standard, “micro-retirement is when a worker takes a break from their career [or full-time employment] for a couple of months or even years,” to explore personal interests like travel or to simply recharge and support their mental wellbeing.
The concept has sparked lively discussions online, with workers sharing their experiences, media delving into the motivations behind this trend and financial experts debating its potential impact on pensions. While stepping away from the 9-to-5 is appealing to many, experts also highlight several factors to consider before embarking on a micro-retirement.
We’ll cover the rising popularity of micro-retirements, examine expert theories on how they could influence pensions and share our predictions on what this trend may mean for employers. Plus, we’ll outline key considerations to help you decide if a micro-retirement is right for you.
What is a micro-retirement?
The concept of a micro-retirement is very similar to many types of sabbatical. Workers take an unpaid period off work, ranging from months to years. Among those who share their micro-retirement experiences online, the most common uses of this time are to travel or start a side business. Essentially, UniLad states, the goal is to “experience life while you’re young, rather than waiting until actual retirement age in your 50s or 60s.”
Why have micro-retirements become popular?
A key reason behind the growing popularity of micro-retirements is their potential to boost wellbeing among millennial and Gen Z workers. 45% of this group reported taking time off for mental health reasons in 2024.
Speaking with Refinery29, HR specialist and business founder, Natalie Whitcombe, attributed the micro-retirement trend to young workers experiencing “high levels of stress and pressure to always be productive, which can lead to exhaustion.”
A TikTok video on micro-retirement, posted by Anaïs Felt, quickly went viral. As a 31-year-old, former Silicon Valley product manager, Felt seized micro-retirement as an opportunity to create content, go through fertility treatments and improve her physical and mental health. In the video, she shared: “I have never felt better. I’ve never felt healthier. I highly recommend it.”
How do workers afford a micro-retirement?
Rather than being a snap decision, effective micro-retirements appear to be part of carefully thought-out, long-term plans. In the caption of her viral TikTok video, Felt shared her financial preparation and personal circumstances: “(…) I paid off my 70k in student debt and saved a sizeable chunk of [money] before taking the leap. I am also childfree.“
This sentiment was echoed by another interviewee in the New York Post, who felt the timing was right for her micro-retirement due to having “a year’s worth of money saved up” and no children or other dependents. The absence of such obligations may explain why the trend is particularly popular among millennials and Gen Z compared to older generations.
Felt herself highlighted the accessibility of this goal, noting: “I come from a low income background and am the first person in my family to go to college (…) so it is possible with the right strategy, grit and resilience.”
How could a micro-retirement influence my pension?
Interestingly, Fortune recently highlighted a parallel between micro-retirements and the growing trend of older workers ‘un-retiring’ due to financial reasons. The article suggested that millennials and Gen Z may be learning from Gen Xers and boomers who struggle to retire fully, shaping how younger generations approach work-life balance.
While taking a year off can temporarily halt pension contributions, some experts suggest that micro-retirements might enhance long-term retirement planning. Standard Life suggests that a well-timed break to prioritise wellbeing could enable workers to extend their careers, ultimately boosting their retirement savings. Supporting this view, Phoenix Insights, the UK’s largest long-term savings and retirement business, found that: “a more flexible approach to work and retirement could extend careers by six years, resulting in an extra £42,000 in average pension savings.”
However, these benefits rely heavily on careful planning and support. Mike Ambery, Retirement Savings Director at Standard Life emphasised this point, noting that with the right preparation: “it could lead to a more sustainable working life, while still enabling financial security in retirement.”
Important considerations before leaving for a micro-retirement
While the idea of a micro-retirement is enticing, experts advise against over-idealizing the experience. Justina Raskauskiene, HR team lead at Omnisend, cautions that time out of work can sometimes lead to a sense of unfulfillment, particularly for those who thrive on routine and challenge.
From a career perspective, Stephen Dwyer, president of the ASA, warns that extended career gaps can make it challenging to re-enter the workforce, especially in industries experiencing rapid technological change. To mitigate this risk, Raskauskiene suggests incorporating freelancing or passion projects into your micro-retirement. This approach not only helps maintain professional sharpness but can also provide supplemental income and bolster re-entry into the job market.
Fortunately, attitudes toward career breaks are evolving. Many hiring managers are becoming more receptive to micro-retirees. As said by Anaïs Felt: “I’m interviewing with some of the top companies in tech (…) none of them seem to care that I’ve taken time off.”
Presenting your micro-retirement experience positively can make a significant difference. Speaking to The Cut, one micro-retiree advised framing the time as an opportunity for growth: “we should be able to communicate to a hiring manager, ‘Hey, I took this time to refocus, and now I’m coming back with more energy than ever, knowing exactly what I want to do and where I want to be.’”
While micro-retirements offer exciting opportunities for personal and professional rejuvenation, careful planning and strategic framing can help ensure the break benefits your career in the long run.
Our predictions: what micro-retirement means for workers and employers
In 2024, 72% of hiring leaders reported losing staff to roles providing better flexibility and pay. According to our recent report – Attracting and retaining staff in 2025 – flexibility remains a key factor for attracting and retaining talent, a trend that shows no signs of slowing down.
For workers intrigued by micro-retirement but hesitant to leave their current roles, sabbaticals offer an appealing alternative. These structured breaks provide the same opportunity to recharge and explore personal interests but with less risk, as employees have a position to return to. Many UK employers – particularly in technology, marketing and finance – already offer paid or unpaid sabbaticals as part of their benefits package.
As micro-retirement continues to gain traction, we predict an increase in sabbatical requests within these sectors. For businesses, supporting extended leave can serve as a proactive retention strategy. By accommodating employees’ needs for time away, companies can mitigate the risk of permanent turnover while fostering loyalty and engagement.
Moreover, as noted by Mike Ambery, returning micro-retirees often bring back renewed energy and motivation, contributing to a boost in morale and overall productivity.
As workplace priorities shift, organisations that adapt by implementing flexible leave policies position themselves as leaders in talent acquisition and retention. These forward-thinking strategies not only appeal to prospective hires but can also strengthen long-term employee satisfaction and commitment.
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