Fran Hughes: Intermittent retirement creates a path to happiness and boosts health

What if I told you you need not wait until age 65 to retire? That the idea of retiring intermittently is a path to creating happiness and boosting health? In a world where the traditional concept of retirement is undergoing significant transformation, the idea of “mini-retirement” is gaining traction. Unlike the conventional retirement model of our forefathers, which typically involves working for several decades before taking a permanent break, mini-retirements involve taking shorter, intentional breaks throughout one’s career. These breaks, which can last from a few weeks to several months, offer myriad benefits that contribute to a more balanced, fulfilling life. If there is one thing I have learnt from my clients over the last 35 years, it is that there are tangible benefits of such a concept. Over that time it has allowed me to jump in myself and embrace retiring intermittently. So here are my five key lessons. Rejuvenation and avoiding burnout With the introduction of “right to disconnect” laws, employees have embraced the right to ignore work communications out of working hours, allowing them to set boundaries, rejuvenate and reset. A recent study found gen-Z are leading the way in adopting the concept of mini-retirements by taking 50 per cent more guilt-free sick days and longer sabbatical leave. One of the most immediate benefits of a mini-retirement is the opportunity to rejuvenate and boost your health. In today’s fast-paced work environment, burnout is a common issue, with many people feeling overworked and stressed. Mini-retirements provide a chance to step away from the daily grind, allowing time to rest, recover and invest back into your wellbeing. This break helps in recharging both mentally and physically, leading to increased productivity and creativity when returning to work. Improved work-life balance Mini-retirements can significantly enhance work-life balance. Instead of waiting until the end of a career to enjoy life, these breaks allow for a more immediate and continuous integration of work and leisure. This approach is particularly beneficial to gen-Xers, commonly known as the “sandwich generation” — middle-aged adults (often in their 50s and 60s) who are caring for both elderly parents and their own children. As ailing parents live longer, so too does the stress of juggling children studying for high school or tertiary exams, layered with the impact of a demanding career. Retiring from “the grind” could help alleviate stress and lead to a more harmonious and satisfying lifestyle, where work does not overshadow personal life. Enhanced career satisfaction and longevity Retiring intermittently can result in increased career satisfaction and longevity. Think of the last time you took an extended holiday. If you’re like me, for the first week it’s hard to switch off from work. By the time the second and third week come around, you’re relaxed and enjoying the moment. By the fourth week, your focus shifts back to the list of things you’re ready to tackle, both in the workplace and at home. Now imagine if the break was three months or a year. Imagine the renewed energy you’d have to pursue the next project with gusto. These breaks allow us to reflect on our career path, assess our goals, make necessary adjustments, and can lead to a renewed enthusiasm for work, greater job satisfaction, and a more sustainable career trajectory. Pursuing passions and personal growth A mini-retirement offers a unique opportunity to pursue passions and interests that might otherwise be sidelined because of work commitments. Whether it’s travelling, learning a new skill, a side hustle, or engaging in a hobby, these experiences can lead to personal growth and a deeper sense of fulfilment and happiness. Author Tim Ferriss encourages people abandon the deferred-life plan and create luxury lifestyles in the present using the currency of time and mobility, referring to them as the “new rich”. Financial flexibility and planning Contrary to the belief mini-retirements are only for the wealthy, they can actually promote better financial planning and flexibility. Senior Australians are living longer — to age 82 for men and 85 for women — and working longer — until 66 for men and 64 for women — which allows for planning and setting intermittent goals. With the unemployment rate at a record low, there is room to retire and re-enter the workforce. Working alongside a financial planner to plan and save for mini-retirements will ensure a comfortable and enjoyable short and long break. Mini-retirements offer a powerful alternative to the traditional retirement model, and may well become the key to a more enriched and meaningful life. In next month’s article, I’ll show you how to plan for a mini-retirement. Fran Hughes is a certified financial planner