Breaks with benefits: The rise of micro retirements

The idea of micro retirements is exhilarating for Mentoresult’s founder Ruchi Aggarwal.?

In fact, young professionals in their 20s and 30s are now opting for mini retirement plans, or extended breaks and sabbaticals, to pursue their interests, according to Wall Street Journal (WSJ). As opposed to traditional retirement, these professionals “want to just take more frequent breaks and mix in a bit of that retirement, borrowing those years from their later selves to enjoy that fun now,” personal finance reporter Oyin Adedoyin says.

Aggarwal too has considered this option, taking inspiration from her friend who opted for it before pursuing an MBA degree. He used the time to learn a new language, travel across three countries, and figure out his career plans. “The micro retirement worked quite well for him, and as a bonus, he also ended up with a lot more clarity about his MBA applications in the US,” she says.?

But the idea is riddled with certain limitations. For Aggarwal, factors like financial independence, ability to work remotely, a professional safety net, and passions outside work are some prerequisites. And making it happen requires a well-founded plan, she adds.

So, what has given a rise to this new workplace trend, and what are the associated perks and risks involved? In this edition of the Get Hired newsletter, we ask experts to shed light on the subject.?

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After a short break

The rise of remote work, various countries offering nomad visas, and young professionals’ intent to explore their passions and unwind from their busy lives are a few reasons paving the way for micro retirements, says Ankkush Agarwal, Head of Corporate Operations at Zeta.

“These career breaks are with the intention to take time off to recharge and rejuvenate or even to think through a new career move,” he says.

According to Ruchi Aggarwal, money and career growth aren’t the only driving forces for the new-age professionals. “They want to enjoy their prime years and not wait decades to enjoy their success,” she says.?

But has the approach towards sabbaticals changed in India? And where do micro retirements come into play in this scenario?

While companies like Accenture had introduced flexible leaves in the form of “small and big time off,” firms across sectors like information technology and finance have been more open to hiring professionals returning from career breaks, Livemint reported.?

However, there hasn’t been a significant change in the outlook. “While sabbatical policies find mention in most organisations, they come with so many terms and conditions that a very small part of the work population even considers it,” says Ankkush. Also, with the current work spans of Gen Z professionals ranging from one and a half years to three years, “companies haven't seen these individuals make significant contributions to the organisations to justify retention strategies by allowing for career breaks and sabbaticals,” he adds.?

India is more conservative compared to other markets, says Ruchi. “The Indian workforce is more careful about taking any ‘risky’ career moves, and a micro retirement certainly is one.”?

While sabbaticals for reasons like childcare, health or education may be normalised, there’s still a question around the adoption of micro retirements due to the financial and career risks involved, she shares.

Pluses and minuses

That said, traditional retirement planning still holds significant value among Indians and around 44% of professionals think that the right age to plan is 35 years, The Economic Times reports, citing a Max Life Insurance study.?

So, what about those planning to give micro retirements a shot? Are there any perks involved??

“The biggest benefit is the ability to disconnect from work — a breather from the daily grind can do wonders for your mental health, creativity and productivity,”? Ankkush says.

The number of professionals struggling with burnout in India is notably higher than in the other parts of the world. According to a Ficci-BCG report, 58% of the Indians experienced burnout and workplace exhaustion.

Micro retirements also offer the chance to travel, explore and learn — another advantage, Ankkush adds.? But there are risks involved.?

A career break can disrupt your professional growth or even cause long-term career issues, says Ruchi.?

Ankkush agrees. “With recessionary trends occurring more often and tech advancements replacing real jobs, one runs the risk of being unemployable as the position is no longer available or more people with similar skill sets are available," he adds.?

Give it some thought

Like every good thing in life, there’s a time, place and circumstance for micro retirement, says Ruchi.?

For those considering taking it up, evaluate your financial situation, employment opportunities, and personal as well as mental security. “If you can mitigate financial risks and employment risks through skilling, negotiations and networking — you’re good to go. If you can mitigate personal risk through planning, timing and mindset — you’re good to go,” she says.?

According to Ankkush, one must at least have 12 to 18 months of living expenses to consider a career break.?

Early career professionals need to be extra careful. “Given the abundance of talent in India, it is possible that early-year ‘micro retirees’ may face a more uphill task to land a similar job,” he says.?

Also, consider keeping a plan B for an alternative career at the ready. The skills for this can be acquired while on the career break — skills that are more in line with current industry trends, he adds.?

?? Check out the previous edition on building meaningful work connections.

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?? Tune in to this video for more insights from Patil.

?? Sabbaticals are underrated, marketing expert Mohita Nagpal says. Taking a long break from work can make your return stronger, lined with fresh perspective and renewed focus, she writes in this post.?

?? Taking a break isn’t a sign of weakness — it’s an investment for long-term success, says Morff’s Shivani Bohare. Generation of fresh ideas and stress reduction are some benefits she mentions in this post.

• Would you consider a ‘micro retirement’? People in their 20s and 30s are embracing these shorter breaks from work to enjoy the freedom of retirement, well before the traditional retirement age, writes LinkedIn’s Senior News Editor Pieter Cranenbroek in this piece.
• Senior product manager Ana?s Felt took a micro retirement to recover from burnout. Read her experience here.

How to set boundaries at work? In this LinkedIn Learning course, Gen Z expert Allison Peck shares practical tips on managing expectations from colleagues and leaders, and cultivating a healthy work-life balance.

This is the 41st edition of the Get Hired newsletter by LinkedIn News India. Each issue aims to provide insights on everything jobs-related, combined with expert views and member voices.?

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By Dipal Desai — LinkedIn Editor covering jobs and career development in India

Associate Community Manager: Neha Upalekar