Some Gen Zs are taking a ‘micro-retirement’. It’s one way to address burnout – but it comes with risks

For young people in the early stages of their career, the idea of waiting 40 years or more to retire might feel like a marathon. For those already feeling burnt out, it can be an excruciating thought.

So – why not take a break or two somewhere along the way?

The concept of “micro-retirement” is having a moment. While the term appears to have been first coined in 2007, it’s recently found new popularity on social media.

The idea is that retirement doesn’t have to be a fixed, clearly defined period at the end of your working life. Rather, it’s possible to restore your human energy and levels of wellbeing by dipping in and out of it, with small or large career breaks.

Many onlookers have pointed out that the underlying concept is not a new idea. Sabbaticals and other kinds of career breaks have been a feature of the workforce for a long time.

However, the trend gripping some of the Gen Z workforce on social media appears to be slightly different. And while it’s trying to solve some legitimate problems, it could also carry some unique risks.

Taking a break

The notion that rest is crucial – that humans shouldn’t just work themselves into the ground – is very old indeed.

Major religions around the world have long preached the importance of rest and restoration for human beings to survive the hardship of paid work.

Career breaks, however, are a bit different from the ordinary rest opportunities we get such as weekends, public holidays and annual leave. There are a few different types.

The first is the full-time career break, such as a sabbatical. This is where an employee, in consultation with their employer, hits pause for an extended period.

This might be to enjoy travel, develop new hobbies or complete training necessary for career progression. However, the company typically continues to pay a salary (or a percentage of it) during the mutually agreed period.

In Australia, many employees are entitled to paid long service leave after serving between seven and 10 years with the same employer, depending on which state or territory they’re in.

Taking a full-time job part-time, can also constitute a kind of career break for some. This is where an employee reduces their working hours or days and earns reduced pay compared to full-time work.

Other types of long-term leave can include parental leave and leave for medical assistance.

In Belgium, a government scheme allows employees to take a career break of up to a year, during which they receive a paid allowance from the government. Previous research into the scheme showed 76% of employees taking full-time career breaks from both public and private sectors were aged between 25 and 49.

Micro-retirement might be different

When Gen Z is talking about micro-retirement, they often aren’t talking about exactly the same thing as a paid, mutually agreed sabbatical.

For many, micro-retirement is a voluntary choice to terminate their employment and support their living through personal savings or government support.

But they are trying to solve similar problems: the health and wellbeing risks associated with pushing too hard – or for too long – at work.

Research by the World Health Organization found the number of deaths from heart disease and stroke that could be attributed to long working hours increased by 29% between 2000 and 2016.

Read more: What's the difference between burnout and depression?

The energy ceiling

My own previous research has examined the “ceiling effect” of human energy. This is when an employee’s energy depletion reaches a tipping point due to their work and begins to affect their wellbeing.

When employees reach the tipping point, or ceiling effect at work, they often use coffee and alcohol as a coping mechanism. This has long-term negative impacts on health.

Sleep also becomes a problem, which can lead to “presenteeism” – where employees show up physically to work but function poorly. This can cost businesses in lost employee productivity.

Flexible or hybrid work can be a double-edged sword that leads to intrusion on home life.

Like any extended break, micro-retirement is a way to replenish or restore the energy depleted. Research into Belgium’s career break scheme found it did improve individual physical and mental health – but it’s important to remember this scheme paid an allowance.

What are the risks?

Micro-retirement might be a new label. But drawing parallels from research into career breaks, there is evidence of so-called “scarring” effects.

This is where the future wages of an individual attempting to re-enter the job market after a career break may be lower than if they had an uninterrupted career.

This can impact physical and mental health, and lead to lower income levels in retirement.

Businesses may not be too inclined to develop policies to implement paid career breaks such as sabbaticals. That may lead more young people to take their own unpaid breaks.

Outside of taking extended breaks, there’s a broader discussion to be had about increasing productivity by redesigning the way we work every day with sustainability and flexibility in mind.

It’s crucial there are ways for employees to disengage from work on a daily basis to restore and replenish their energy.