Retirement used to mean working hard until you turned 65, then putting your feet up and ticking off a bucket list you'd been planning for decades. But times are changing. Many people are now embracing the concept of micro retirement. You don't have to wait until traditional retirement age to live your dreams.

What is micro retirement?

Micro retirement is the new buzzword – it means taking short, planned breaks from work before your official retirement age. Instead of waiting until your 60s to travel, pick up a new hobby, or spend more time with family, you carve out a mini retirement for a few months, or even a year.

Taking a micro retirement gives you a chance to rest, recharge, and explore life outside the office. You might want to downsize your home or lifestyle, travel to new countries, learn a language, volunteer in a role where your skills can uplift and empower, or take on personal projects that you've never had time to tackle.

Reasons to consider micro retirement

• Avoiding burnout
  Taking a break longer than your normal paid leave every few years can help you manage stress and prevent long-term exhaustion.
  
  
• Pursuing passions
  If there's a hobby, skill, or dream you've always wanted to explore, a micro retirement gives you the time.
  
  
• Testing the waters
  When you're considering a career change or starting a business, short breaks let you experiment without fully leaving the workforce.
  
  
• Knowing life's too short
  Why wait decades to enjoy the experiences you value?

How to micro retire

Early retirement is usually the privilege of the wealthy, but micro retirements are possible on tighter budgets – although you will need to plan and prepare carefully.

• Have enough saved or ongoing income
  Micro retirement requires savings or a side income to cover living expenses while you step away from work. Treat your future time off like any other financial goal. Set up a dedicated 'micro retirement fund' savings account and contribute as much as you need to every month. The more you save upfront, the less you'll have to worry about income and expenses during your break.
  
  
• Understand the impact on your retirement savings
  Will you be able to maintain your retirement contributions unchanged during your micro retirement? Reducing your contributions or withdrawing money from your retirement savings pot significantly harms the long-term growth of these investments. Consult a financial adviser to explain the implications thoroughly before you make any changes.
  
  
• Discuss your options with your employer
  Some people negotiate sabbaticals, remote work arrangements with reduced commitments, or unpaid leave to make a micro retirement feasible.
  
  
• Decide what you want from your micro retirement
  Whether it's travel, learning, or just downtime, clarity will help you plan better.
  
  
• Downsize or simplify
  Cutting your lifestyle expenses is a good way to prepare for micro retirement. Downsizing doesn't have to mean giving up comfort – it's about being intentional with how and where you spend. Maybe that means less gym and more hikes, renting out a spare room, or choosing a more fuel-efficient car, depending on your circumstances.
  
  
• Plan smartly
  The difference between a dream and a plan is the detail. Be strategic about when to take your micro retirement – ideally during a low-pressure season at work, or after a big project wraps up. Give your employer enough notice, outline how your responsibilities will be covered, and decide how long you can afford to be away. Whether it's 3 weeks or a year, set a clear timeline.

Micro retirement is a fresh way to approach work-life balance and personal fulfilment. It's about living in the now, not just waiting for the distant dream of retirement.

Although a micro retirement can have many benefits, don't devote resources to it at the expense of your traditional retirement planning, which should include long-term financial products such as tax-free investments. Be especially careful not to dip into long-term retirement investments early to fund mid-career breaks, as this can seriously reduce the amount you receive at retirement age.

Speak to a Nedbank financial adviser about saving and investing wisely for all your long-term goals, including a comfortable permanent retirement.