Gen Z is embracing the concept of “micro-retirements,” extended breaks from work exceeding typical vacations, as a method to enhance mental health. Experts acknowledge potential benefits if time is utilized effectively, but drawbacks include hindering career progression and reducing lifetime earning potential.
Gen Z, known for its unique approach to work-life balance, is increasingly adopting “micro-retirements” – prolonged breaks from work that go beyond standard vacations – to prioritize mental well-being. These extended periods of time off are seen as a way to recharge and prevent burnout.
Adama Lorna, a self-described personal development enthusiast in her 20s with a significant following on YouTube and TikTok, champions micro-retirements. She advocates for experiencing travel and personal pursuits in younger years, rather than postponing them until traditional retirement age. “Instead of waiting until you were 60 or 70 to travel the world … you do them [while] you have your youth, your energy, your health,” Lorna explains.
Another TikTok user, Anais Felt, shared her positive experience six months into her micro-retirement from a corporate job. “I have never felt better. I’ve never felt healthier. I’ve never more rested. It’s been amazing,” Felt stated, emphasizing the importance of financial preparation, such as paying off student debt and saving beforehand.
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Dr. Christopher Fisher, director of adult outpatient psychiatry at Northwell, acknowledges the potential mental health benefits of these extended breaks. “It does empower individuals to take more control in their lives,” he explains. Reducing burnout, attending to personal commitments, and returning to work rejuvenated can enhance productivity and overall well-being.
The term “micro-retirement” itself reframes the concept of an extended vacation. “Thinking about it as a micro-retirement prioritizes this time throughout their life. It’s not like traditional retirement: something we’re working toward that maybe we’ll never hit,” Fisher notes.
However, Dr. Fisher cautions that these breaks can disrupt the consistency and structure crucial for professional and personal growth. Loss of motivation and missed opportunities are potential risks. He emphasizes the importance of spending this time wisely, engaging in meaningful activities aligned with personal values rather than short-term indulgences. “If you’re taking breaks, it’s good for you to connect with the things that are most important to you and engage in value-based activities, commitments, things that truly connect to you at your core.”
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From a financial perspective, Paul J. McCarthy III, president and founder of Kisco Capital, suggests that the true benefit lies in using the time for skill development that enhances future employment prospects. “You can use time off to learn and bring a new skill set to your repertoire for your job, but it depends how you use your time,” McCarthy advises.
While the impact on 401k contributions for those in their twenties is minimal, McCarthy warns about the significant risk of losing career momentum. Taking extended breaks early in a career can hinder professional advancement compared to peers consistently working and building experience. Recurring gaps in a resume can make re-entering the workforce challenging.
Ultimately, McCarthy emphasizes the importance of financial security for overall well-being. “Freedom comes from financial freedom,” he states. “I would say your mental health is probably affected most if you run out of money.” Micro-retirements, while potentially beneficial for mental health, require careful consideration of both personal and professional consequences. Strategic planning and mindful utilization of time are crucial for maximizing the positive impact of these extended breaks.
