Following 'quiet quitting' and 'lazy jobs', new analysis from Standard Life, part of Phoenix Group has identified an emerging Gen Z/Millennial trend.  

Mike Ambery, Retirement Savings Director at Standard Life, comments on how ‘micro-retirement,’ where individuals take relatively short, intentional breaks from work throughout their careers to boost their work-life balance and wellbeing, could boost people’s retirement saving in the long-run.

While a period of, for example, a year away from work could lead to a short-term savings pause, ultimately staying in work for longer due to greater fulfilment earlier in life could prove lucrative. Research shows people in the UK tend to have a more negative perception of work than their international peers, so were a more fluid approach to work and retirement to change attitudes and encourage people to stay in employment for six years longer, analysis shows that savers could build up additional pensions savings.

Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group said:

Taking a ‘micro-retirement’ might mean a temporary pause in pension contributions, however the trend offers a unique opportunity for your ‘proper retirement’ savings as well as shorter-term personal wellbeing. We know that people who feel fulfilled and happy tend to stay in work for longer, so taking time out and returning to your working life refreshed and motivated could extend your career and leave you with a larger pot.

As you tend to be at your peak earning potential later in your career, saving for a few extra years just before retirement could have a disproportionately positive impact. There’s a good chance people will be living longer in future and so retiring a few years later, with a bigger pension, could give you a better chance of ensuring your savings last as long as you need them to.

Full press release: Ready for (Micro) Retirement? What a career break could mean for your pension

✉️ James Ikin, Lansons, 07825 191308 / jamesi@lansons.com