Corporate Perks Candidates are Asking for in 2025
April 10, 2025
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The latest buzzword that has Gen Zs in a dizzy and managers in the trenches is micro-retirement. Now, does this mean that Gen Z is retiring early? Obviously not, but also yes. As the new generations take over the workplace, things have to change, and this might not be as surprising as previous shake-ups, as they’ve expressed loudly their values and willingness to commit to them.
So, what exactly is to micro-retire? And can companies use it in their favor? Dive into this topic with experts and top publications below.
In The Guardian’s Pass Notes, a section exploring new trends in the workplace, the paper’s staff explain in a few words what’s buzzing around the world. Micro-retirement is the latest trend, except not. As they point out, this term was actually coined in 2007 by Timothy Ferriss in his book The 4-Hour Workweek. In fact, he spelled it as micro-retirement.
What is micro-retirement? It can be defined as taking a break from working for a few weeks to a year. The idea is to have some time to pursue hobbies and other interests outside of work and a strategy to avoid or recharge from burnout. Some people have correctly said that this resembles a sabbatical or a gap year, but those are linked to academia, while this is all about a working life.
“Instead of waiting until you’re 60 or 70 to travel the world and indulge in hobbies, you do them while you have your youth, your energy and health.”
A micro-retirement is supposed to replace the traditional retirement. Gen Z is aware that they’re not receiving pensions by the time they reach retirement age, and even if they did, like generations before them, that doesn’t stop them from needing to go back to work. The idea is to enjoy their youth while they can, under their own rules, even if that means working until their final days. The author points out that this mindset, though good on paper, has flaws, especially when people start aging and presenting health problems. A good alternative, though only available to remote workers, are hush trips.
Bryan Robinson takes his piece for Forbes in another direction by acknowledging how the workplace and workforce have changed in the last few years and how they have remained the same. Between the pandemic, inflation, and the generations in the workforce, it has all added up to a perfect storm.
The first thing is that Gen Z has pushed for work-life balance all throughout their careers. And as this younger generation is stepping into higher positions at work, people have already seen how this is a big core value for them. As such, seeing how retirees are actually coming back into the workforce has made them think about their own future. This trend is the answer to that question; they’ve decided that now is the time to enjoy themselves as there will always be work on the horizon. And as such, they want to micro-retire.
The thing is, people aren’t retiring—not really. Studies predict that 13% of retirees plan to come back to the workforce in some way or another. This has even been named The Great Retiree Return. Their return to the workforce can be a good opportunity to have a seasoned and knowledgeable talent pool. Not only that, but that could bring generational diversity at work, with generations helping each other succeed.
“It’s evident that people are starting to acknowledge they may work well into their 70s, which is why they are planning periodic rest rather than deferring all leisure to later years.”
The article ends with a call to action for companies. Suppose it’s clear that these two generations are going to be part of the workplace soon, so employers may need to find reasonable accommodations for both. Ageism, technology, and lack of training are some of the things boomers are struggling with when trying to return, so if companies want to use them in their favor, having policies to counter this is ideal.
It’s the same for Gen Z employees: They need to find practices that help them thrive and align with their values.
Now, Erin Lowry builds upon this last idea in her article for Bloomberg. She starts by mentioning that this is a rebranded sabbatical, but with a few differentiations. The main one: it should be a focus for companies.
She mentions that Gen Z is a more vocal generation thanks to social media, and everything they’ve said makes so much noise because everyone is on the same platforms. She also mentions that it’s normal and common for things to change around the office when a new generation starts working, from clothing to how people talk to subordinates.
Workplaces fear a lack of engagement, and listening to young workers might be a new solution to this malaise. With workers having no qualms about career catfishing, quiet quitting, and other such trends, people just take their stuff and go, leaving companies scrambling to find replacements. This costs companies thousands of dollars just in recruitment, and then you add the onboarding and training, and there is a productivity slump until the new employee is up to speed. This leads Salary.com to estimate that replacing employees costs half to twice their salary.
“On the flip side, micro-retirement could be treated like an employee going out on parental leave, and work could be distributed amongst colleagues.”
Lowry calls for companies to rethink their retention strategies by adopting a micro-retirement into their benefits. She argues that this could be unlocked after a certain time at the company and could be given to anyone in a similar vein to a parental leave. Unlike parental leave, this perk can be acquired by anyone who meets the requirement of having lasted as long at the company. This would help retain and attract talent while being a good measure against burnout of tenured employees.
So, how much money would you need for a micro retirement? Well, that depends on your finances, how long you want to stay away from a job, and how long it would take to find another one. After all, the idea behind this is to quit altogether, which means losing all financial security. Lowry recalls how she was tremulous by that prospect when she began freelancing, but ultimately, she found that taking a three-month break a year would help her recharge for bigger projects.
Micro-retirement is not a new concept, but it can become a saving grace for companies struggling to retain and attract employees. The idea of workers venturing out on their own to find a micro-retirement is a tricky gamble, but if it’s used as a benefit, companies might reward tenured employees with a bit of a break to avoid or mitigate burnout or disengagement symptoms. This would be helpful for the younger generations that are currently the biggest in the workplace, as well as older generations currently working or even the returning retirees, as a strategy for retention, engagement, and attraction of talent across all age pools.
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