Traditionally, retirement has been seen as a “cliff edge”. You work hard for decades, carefully accumulate a pot of wealth, then step away from your career entirely and start drawing from your fund to support the lifestyle you’ve dreamed of.
However, this idea of retirement is fast evolving. In a previous article, we explored the concept of “unretirement”, where you return to work after initially entering the next phase of your life.
Now, a new concept is starting to surge in popularity – a “microretirement”.
This was initially discussed in Timothy Ferriss’s 2007 book, The 4-Hour Workweek, but it has only recently captured the public’s imagination, partly thanks to social media.
With this in mind, continue reading to discover exactly what microretirement is and some of its benefits and downsides so you can decide whether it would work for you.
A “microretirement” involves taking short breaks throughout your career
A microretirement is essentially the idea of taking short and planned career breaks throughout your working life, not just at the end.
These breaks, which might last from a few weeks to even a year, are carefully planned periods of rest and personal development.
They’re intended to be repeated at intervals throughout your working life, too, becoming an integral part of your career rather than waiting for one long retirement.
Most importantly, microretirement isn’t about abruptly walking away from your career when you’re fed up. It often involves negotiating with employers or structuring your work in a way that integrates these breaks without completely abandoning work altogether.
One reason this trend seems to be taking off is due to longevity. Life expectancies have continued to rise in the UK, with the Office for National Statistics (ONS) revealing that boys born in 2023 can expect to live to 86.7 years on average, and girls to 90.
Those closer to retirement age may also live longer than their parents or grandparents did. The ONS estimates that a 60-year-old man in 2025 is expected to live to 84, and a woman the same age could live to 87. Both demographics have a 1 in 4 chance of living past 90.
This means you may need to stretch your pension fund over a 20-, 30-, or even 40-year retirement.
However, a microretirement could allow you to spread your savings over a more extended period, easing any pressures to accumulate a considerable nest egg by the time you reach a certain age.
What’s more, there is also a cultural shift contributing to the trend’s popularity. More people seek balance and wish to incorporate passions – such as travel, creative pursuits, or volunteering – into their lives rather than putting them off until later.
A microretirement comes with some considerable benefits
There are some notable benefits to microretirement for both your financial and emotional wellbeing.
1. It could boost your retirement savings
Interestingly, microretirement could actually help you boost the overall value of your pension fund in the long run, as an example from Actuarial Post highlights.
Imagine someone starts working at the age of 22 on a salary of £25,000 and pays the minimum auto-enrolment pension contributions (5% from them, 3% from their employer).
In this case, they would build a retirement fund of £163,000 by age 62, adjusted for inflation.
If they took a 12-month microretirement break at 30, but still retired at 62, their fund might be around £4,000 smaller.
Though, if they took that same break at 30 but extended their working life to 68, their pot could grow to £205,000 – an additional £42,000.
As you can see, by enjoying your younger years and working a bit longer later on down the line, microretirement could bolster your pension savings, potentially giving you more security in later life.
2. You could reduce the effects of burnout
It’s fair to say that work can be incredibly demanding at times, and you may find that a few weeks of holiday a year simply isn’t enough time to relax and unwind.
If you experience burnout, this can lead to several symptoms for your physical and mental health – which our new article covers in greater detail.
As an alternative, a microretirement (or several of these spaced out across many years) could allow you to step back and focus more on your needs, hobbies, and relationships.
This could, in turn, improve your work-life balance and bolster your overall wellbeing. You may even find you’re more productive when you return from your break.
3. You could increase your career longevity
With life expectancies on the rise in the UK and the likelihood that the State Pension Age will increase in the future, there’s a good chance you may be working well into your 60s (depending on your current proximity to retirement).
If you already anticipate a longer career, a microretirement could allow you to enjoy a restful break sooner rather than later.
Moreover, taking time for yourself during your working years could give you a new sense of purpose and prevent career fatigue. This might not only enhance your job satisfaction, but also encourage you to stay in the workforce for longer.
There are some potential downsides to keep in mind regarding a microretirement
Of course, as is the case with most career moves and retirement decisions, microretirement comes with its own set of considerations that you need to weigh carefully.
1. You might not want to work for longer in your later years
As mentioned, while microretirement might mean you have more time to enjoy yourself when you’re younger, it often requires extending your career to financially offset these breaks.
This might not necessarily appeal to you, especially if you’ve always imagined stepping back from work entirely once you reach a certain age.
There’s also the risk that, as you age, your health could deteriorate, meaning you’re unable to work. This could mean you face a shortfall in retirement, unable to maintain your standard of living or pass on wealth to your loved ones.
2. You could affect your career progression
Taking frequent breaks from work – even planned ones – could potentially affect your career progression over time.
Indeed, some employers might view a microretirement as simply a lack of commitment, potentially affecting your ability to secure promotions or pay rises.
You may also find that returning to the workforce after a year away is a challenge in itself, as you may lack the motivation or momentum that you previously had.
The job market can also be incredibly competitive, and the time off might mean you need to update skills or enter a new industry when you return, which could slow your career progression.
3. You would need to budget carefully for the career breaks
Since a microretirement break would require a period of little – or even no – income, it would require careful budgeting and planning to ensure that you can support yourself.
Unlike a short trip abroad, these extended breaks could make covering living expenses, travel costs, and any unexpected emergencies challenging without a steady income.
What’s more, you may even face hidden costs when you return to work, especially if you find you need to retrain or update your equipment.
Failing to account for these costs, or not budgeting correctly, could quickly derail your progress towards your long-term goals.
Get in touch
While a microretirement is by no means a traditional way to live, you might still be curious about ways to prioritise your wellbeing in your financial plan.
To find out more, please email us at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
Your pension income could also be affected by the interest rates at the time you take your benefits.
