Micro-retirement: A fresh retirement approach

Our fast-paced world often forces us to prioritize career advancement and productivity. But the micro-retirement trend is challenging that notion in favour of a little rest and relaxation.

If you want to take a pause to travel or work remotely between highly demanding jobs, you might want to learn more about micro-retirement. Micro-retirements are extended gaps between working to take up other pursuits or to travel. With the rise of remote work, some people make plans to work part time or to freelance while roaming the world.

Read on to learn if micro-retirements are right for you and how to plan for your next micro-retirement. 

Traditional retirements are the rest at the end of a career of many decades. But micro-retirements are temporary pauses in work and productivity that can take place at any point of someone’s career.

The advantage of micro-retirements is periodic rest, when you decide you need it most. You can pursue passions outside of work, try your hand at project-based passions, or freelance employment on a part-time schedule. 

Workers of all ages can benefit from a micro-retirement. People are now working later in life, trends show, and these older workers can leverage micro-retirements as scheduled, periodic rest between roles, Forbes writes. The trend is already popular among Gen Z workers, who tend to highly prioritize mental health and fulfillment. 

Micro-retirements allow workers to reset themselves and come back to work more productive and fulfilled. The goal is to cultivate a more balanced, fulfilling life. The appeal of micro-retirements is growing among Canadians. An estimated 68 percent of Canadians polled by Explore Worldwide say they are open to micro-retirements. Micro-retirements especially appealed to Gen Z respondents. 

Cultural and economic factors contribute to the appeal of micro-retirements among Canadians. Social media influencers fuel the growing popularity of micro-retirements. And cultural trends such as the growth of the gig economy, remote work and flexible work arrangements make micro-retirements a possibility for more workers. 

A desire for flexible, remote work and gig work opportunities has been growing since the pandemic. These less traditional work arrangements make taking on reduced hours, travelling more often, or temporarily pausing work possible. 

Additionally, a growing desire for work-life balance across generations makes the idea of micro-retirement appealing. More than 50 percent of Canadian workers report feeling burnt out, according to a recent survey, and 80 percent of millennials stated that they prioritize work-life balance when choosing a job. If this sounds like you, maybe consider a micro-retirement that works for you. 

Micro-retirements pay dividends in improved mental health, self-discovery and time with family. But taking extended downtime takes a lot of planning.

Firstly, take a careful tally of your monthly and yearly expenses. Don’t only calculate your biggest expenses, such as housing and transportation. Include smaller, recurring expenses such as subscriptions and giving. Everything adds up.

Once you have a clear understanding of your regular spending, consider ways to reduce expenses, starting with the biggest costs. Can you sell your car and rely on transit if you’re travelling between major cities during your micro-retirement? What about living with family or subletting a room in your home to generate income to prepare for your time off?

Consider a temporary side gig, investing or selling possessions to build income to fund your micro-retirement. Also, think about your return to the workforce after micro-retirement. Are you able to take a leave of absence from your current job? Should you consider freelance work to keep your skills or resume current? 

If you plan on travelling at any time during your micro-retirement, you may want to consider travel insurance. Allianz Global Assistance offers flexible plan options that include emergency medical, trip cancellation and baggage protection.

Emergency medical coverage:

You should know that your provincial or territorial health insurance plan may not fully cover you if you experience a medical emergency outside of your home province. An Allianz Global Assistance plan may help you fill coverage gaps.

Trip cancellation and delay coverage:

You should also consider that travel delays and cancellations can be costly. Let’s say you booked a cruise to Cancun, but your flight to your cruise port in Canada was rescheduled due to a winter storm. You can’t make it to the port on time, so you miss the cruise, which is non-refundable, according to the cruise line’s policy.

An Allianz Global Assistance plan with trip cancellation coverage refunds certain non-refundable trip costs, such as cruise tickets. You may be able to postpone your trip for another day without major financial losses.

Baggage protection:

Delayed and lost baggage can be a major expense and inconvenience. An Allianz Global Assistance travel insurance plan with baggage protection may reimburse certain non-refundable expenses if your baggage is lost, stolen, delayed or damaged.

Annual travel insurance for micro-retirements:

If you plan on travelling more than once a year during your micro-retirement, consider an annual travel insurance plan to save you money. An annual Allianz Global Assistance plan provides protection for an unlimited number of trips over a year.

Micro-retirements can be an incredibly meaningful and rewarding way to reset your life and goals. With careful planning and an understanding of your financial and work needs, you can have a fulfilling and restful micro-retirement. Why not give this trend a try?

Get a quote today to see how we can help you travel with peace of mind.

This article is intended for general informational purposes only and does not constitute legal, medical, financial, or other professional advice

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