Retirement often feels like some far-off fantasy. But many employees may be able to retire sooner than they realise – at least for a little while.
Millennials and gen Z are responsible for plenty of shifts in workforce dynamics, from normalising side hustles to seeking purpose-led employment. Now, their emphasis on workplace flexibility and wellbeing has given rise to ‘micro-retirement’: extended career breaks taken periodically throughout an employee’s working life.
The Covid pandemic sparked this trend, prompting people of all ages to reconsider their careers and long-term priorities. Unlike short holidays or employer-sponsored sabbaticals, micro-retirement is usually self-funded. And because it lasts for months rather than weeks, micro-retirement provides employees with space for meaningful rest, travel or personal projects.
Why is it happening
Burnout is a key driver of micro-retirement. Nine in 10 (91%) UK workers experienced high or extreme pressure or stress at some point over the past year, according to the Burnout Report 2025 from Mental Health UK. One in three adults experienced such elevated stress levels often. Younger employees are especially vulnerable to burnout. Those aged 18 to 24 are most likely to take time off for mental health reasons, and are also the least likely to fully switch off outside of work.
What it means for organisations
Micro-retirement upsets conventional HR policies around leave and succession planning. On the one hand, organisations that accommodate months-long hiatuses stand out as progressive employers that value wellbeing as much as performance. But, on the other, allowing for extended breaks inevitably disrupts standard assumptions about work experience and progression.
Some companies are formalising policies on sabbaticals, extended unpaid leave or career breaks, providing micro-retirees with a structured path to return to work. But these benefits can create challenges for workforce planning. HR leaders must hire temporary replacements and ensure that any knowledge or expertise is retained across the workforce. Worse still, employers will be left wondering whether the micro-retiree will ever return.
How HR should respond
Micro-retirement is unlikely to fade away. As younger generations gain influence in the workplace, demand for flexible career pacing will only grow. Employers currently make one-off exceptions for micro-retirement, if it’s allowed at all. But the challenge for HR is to create structured policies for such flexibility that limit disruption and keep employees engaged in the long term.
That means establishing clear rules on employee benefits during prolonged breaks, offering re-entry support and training managers to handle extended absences without inadvertently penalising micro-retirees. Employers that get these policies right may find it easier to attract and retain talent.
Retirement often feels like some far-off fantasy. But many employees may be able to retire sooner than they realise – at least for a little while.
Millennials and gen Z are responsible for plenty of shifts in workforce dynamics, from normalising side hustles to seeking purpose-led employment. Now, their emphasis on workplace flexibility and wellbeing has given rise to 'micro-retirement': extended career breaks taken periodically throughout an employee’s working life.
The Covid pandemic sparked this trend, prompting people of all ages to reconsider their careers and long-term priorities. Unlike short holidays or employer-sponsored sabbaticals, micro-retirement is usually self-funded. And because it lasts for months rather than weeks, micro-retirement provides employees with space for meaningful rest, travel or personal projects.
