How to turn your ‘micro-retirement’ dream into reality

Why wait till your sixties to retire and enjoy life? With “micro-retirement”, you can do that even in your twenties.

The idea of “micro-retiring” is quickly gaining traction, especially among young people today.

Coined by author/entrepreneur Tim Ferris in his book, "The 4-Hour Workweek," a micro-retirement is a series of meaningful respites throughout your life in which you take a break from your career, rather than taking one final retirement at the end.

So instead of working non-stop from say ages 21 to 64, you take a career break every two to four years to travel, pursue personal goals, or just take a breather.

These career breaks last anywhere between a few months to a year, before you return to work. The cycle then repeats itself for the rest of your life.

Why are people micro-retiring

Waiting until I'm 65 when I'm likely less able or healthy enough to do the things I've always wanted to do doesn't make a lot of sense to me," said one micro-retiree who took a year off work to travel with his family.

"Since I'm not retiring early any time soon, a mini-retirement seemed like a great way to spend quality time and have a great new experience as a family.".

"Given that I could be hit by a car tomorrow or die of cancer when I'm 42, a mini-retirement is an absolute no brainer. You just have to have a plan and be smart about it,” he added.

1. Start with a clear purpose

Micro-retirement isn’t just about taking time off — it’s about taking time off with intention.

For some, that means exploring the world. For others, it’s about upskilling, volunteering, caring for loved ones, or working on a passion project. The key is to define what this period will mean for you. With clarity, you’ll be better equipped to plan your finances and your time.

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2. Plan your expenses realistically

The financial foundation of a successful micro-retirement is simple: you need enough to cover your lifestyle during the break — without dipping into long-term retirement funds or going into debt.

Start by estimating your current monthly expenses. Multiply that by the number of months you plan to take off. Then add a buffer for rising costs, travel, or any new activities you intend to pursue.

A good rule of thumb is to save 1.5x to 2x your estimated costs. This gives you peace of mind and room for flexibility.

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3. Don’t neglect your future

It’s important to remember that micro-retirement is not a replacement for long-term retirement. You’ll still need to plan for life and expenses after 60 — which means continuing your regular savings and investment contributions even during your break, if possible.

You may also want to explore passive income options or investments that continue to grow while you’re taking time off.

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4. Protect yourself with a safety net

Life is unpredictable — and that applies whether you’re working or on a break. Unexpected events like medical emergencies, accidents, or family responsibilities can derail even the best-laid plans.

That’s why a solid protection plan is essential. Make sure your health insurance, critical illness coverage, and emergency fund are up to date. These provide a safety cushion and allow you to enjoy your time off with peace of mind.

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5. Plan your return — before you leave

A successful micro-retirement isn’t just about what happens during the break. It’s also about what happens after.

If you’re employed, consider speaking with your employer about extended leave or sabbatical options. If you’re self-employed or running a business, think about how you can keep operations going — or pause them — without long-term damage.

And always have a plan to re-enter the workforce or restart your income stream. That way, you return not just refreshed, but ready.

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Final thoughts

Micro-retirement is more than a break — it’s an investment in your well-being, clarity, and growth.

With thoughtful planning, disciplined saving, and strong protection, it’s entirely possible to enjoy a purposeful career break without compromising your financial future.

Because sometimes, the best thing you can do for your long-term goals… is take a well-planned pause.

Want help creating a personalised micro-retirement strategy? A financial representative from Great Eastern can guide you through every step — from setting savings goals to ensuring your protection coverage is in place.

You can speak to a financial representative or view all our wealth products here.