What is micro-retirement? Why millennials and Gen Zs are taking career breaks

When Ms Rachel Yeo and her husband visited Tasmania during their honeymoon in 2022, they were struck by the simplicity and tranquillity of life in the countryside.

That week-long trip sparked something deeper for the Singaporean couple – a yearning for a slower pace.

So, in June 2024, they gave up their fast-paced careers to “micro-retire” for a year in New Zealand.

Ms Yeo, 28, who had worked as a marketing manager for a healthcare start-up, said: “My partner and I love nature and hiking. We were curious about living sustainably through growing our food and being less reliant on money. New Zealand is the best place to explore these interests.”

To fund their year-long sojourn, Ms Yeo and her 30-year-old husband – who previously worked in sales in electric vehicle charging station installation – took on odd jobs in New Zealand. These ranged from planting trees to pet-sitting to farming for locals in exchange for accommodation.

When they spoke to The Straits Times in February, they were working at a cafe in Lake Tekapo, a township in New Zealand’s South Island.

What is micro-retiring?

So, what is micro-retiring? Similar to the more familiar sabbatical, it refers to when individuals, especially younger professionals, take a break from their jobs to do things that most would normally do at the end of their careers, such as travel or a passion project.

The period of the break may range from several weeks to a year or two.

The concept of micro-retirement was first coined by entrepreneur Tim Ferriss in his 2007 book, The 4-Hour Workweek. He said the idea challenges the long-held belief that enjoyment should be deferred until retirement age.

The term re-emerged on social media platforms such as TikTok in recent months. It is a buzzword adopted by young workers – in Singapore and around the world – who are choosing to pause their careers to enjoy the perks of retirement while they still have their youth, good health and energy.

Recruitment experts told ST that, unlike previous generations of workers who were focused on career-building and long-term savings, Gen Zers and millennials often seek a balance between career success and personal well-being.

This includes a focus on “living in the moment”, said Mr Akshay Mendon, Singapore head of global executive search firm EMA Partners.

“The pandemic highlighted the importance of mental health and flexibility. More people recognise that life is unpredictable, and balancing work with rest is crucial to sustaining long-term happiness and productivity,” he added.

Experts also noted that micro-retirements may become more common, especially as Gen Zers are projected to work into their 70s. In Singapore, retirement age and re-employment age will be increased to 65 and 70 respectively by 2030. 

Not without risks

Still, Ms Yeo’s decision to micro-retire was not an easy one.

Her parents had reservations about her leaving a stable job for a year of uncertainty, and she took months to convince them that she was not acting impulsively.

“There will always be a reason for one to say that it’s not convenient to travel or live overseas, or to do the things one wants. If we keep pushing what we want to do to the next time, we may never get around to doing it,” she added.

In preparation for their year-long adventure, the couple saved up around $20,000 to cover an estimated six months of expenses. They also rented out their five-room flat in Singapore to cover their mortgage payment for the year.

Ms Yeo said she and her husband have no regrets.

She said: “I used to be quite career-focused and I cared a lot about how I can provide financial stability for the people I love. But these days, I want to make a conscious effort to focus more on things that energise me, spaces where I can meaningfully contribute to society and let money be a by-product of the things I do, instead of the main focus.”

Micro-retirement, however, is not without risk, experts told ST. 

Taking such periods away from work might hinder career growth, said Mr Richard Bradshaw, chief executive for Asia at executive search firm Ethos BeathChapman. 

He added that young professionals might miss opportunities for advancement or risk having their jobs threatened, especially with the rise of artificial intelligence and outsourcing.

Employers might also perceive such employees as being less committed to their careers, said Mr Mendon.

Such breaks also come at a cost to firms, he added, noting that they could disrupt workflows and increase costs for employers due to the need for temporary replacements.

Mr Bradshaw said some companies explore contracting or project-based work to maintain business continuity.

These companies, he added, accept that they may have to adjust their policies to meet the needs of a new generation of employees, who are challenging traditional work norms.

Employers, he said, are now asking themselves: “Would you prefer to hire someone who is close to burnout and has little leave? Or that same someone who is super fresh, comes with new ideas and is highly energised after a good break?”

The gift of time

Ms Veronica Tay pondered long and hard about what to give herself as she approached her 30th birthday, and arrived on arguably the most valuable gift: time.

With a desire to travel, volunteer and create content, she took seven months of unpaid leave from her job as a communications and engagement officer at a statutory board in 2023.

Though her supervisors had mixed reactions at first, they eventually supported her request for no-pay leave. 

During those seven months, Ms Tay travelled to Thailand, Taiwan, Japan and South Korea with her parents, who are in their 70s.

She took a two-week online media course, where she learnt about videography and scripting, and also found time to volunteer as a mentor for youth.

She spent $9,500 during the seven months and said the investment was worth every cent as she was able to achieve a better state of mind and body, and return to work recharged.

Ms Tay, who is now working as an alumni relations executive at Nanyang Polytechnic, said the experience also taught her to live in the moment.

She told ST: “If I am not in good health, would work still be my priority? What if I have wealth, but not the good physical health to enjoy it?

“I learnt that one should live for oneself, not for the expectations of others.”

She had agonised over whether she should take a micro-retirement.

“I remember crying while asking my mum if this was a foolish decision,” she said. “I felt guilty as it seemed like a luxurious choice made at the expense of time and money.

“She assured me that I was still young and encouraged me to go for it.”

Human resources consultant Rachel Tio was ahead of the curve when she decided to take a break in 2018.

A now-or-never situation had nudged her to take a leap of faith.

She was a 25-year-old with a long-held dream – to study dance at New York’s renowned Broadway Dance Center. The prestigious programme accepts only applicants aged 25 and under.

So, Ms Tio took three months of unpaid leave and swopped her office cubicle for a nomadic 12-week experience in the US, travelling across the country on weekends while attending 12 dance classes a week. The decision is one of the best she has made, she said.

“I was a little hesitant about not having a salary for three months, but realised that freedom like this is precious. Money can always be earned later, but I’m not sure if I’ll ever have such freedom again with little obligations,” said Ms Tio.

She funded her $10,000 in living expenses during the period with savings from two years of work, while her mother contributed half of her $4,400 school fees.

Ms Tio looks back fondly on her investment in herself. She said: “It was a time to focus on what I love, and I felt truly alive. It was the best time to take a break – before I had kids or major job obligations.”

Weighing up a micro-retirement? Here is what you should consider

• Assess market conditions
  Every industry operates at its own rhythm and understanding these cycles is crucial to ensuring a smooth re-entry into the workforce. Stepping away at the wrong moment could mean missing out on key milestones or opportunities that could accelerate growth.
• Explain the time-off to bosses
  Employees should frame their micro-retirement as a period of growth, learning or strategic rebranding to help employers see the value it adds both personally and professionally. Giving bosses a heads-up will not only make their job easier, but also send a positive message that you are thinking about the company. 
• Be prepared 
  Employees should ensure they have sufficient savings to support the micro-retirement, and must be mentally prepared that they might lose some near-term opportunities when they are away.
• Stay engaged
  Employees should make an effort to stay engaged with industry trends during their break and use this time to gain new skills or experiences that add value to their professional profile. Keeping abreast of general happenings at their company on a monthly basis during their micro-retirement period could help them hit the ground running faster when they return to work.
• (Tips provided by Mr Akshay Mendon of EMA Partners and Mr Richard Bradshaw of Ethos BeathChapman)

This article was originally published in The Straits Times.