Burnt-out workers are considering 'micro-retirement.' Here's what it is and how to do it successfully.

• A micro-retirement is a new way for young workers to achieve a work-life balance.
• It involves taking a significant career break to combat burnout or pursue personal passions.
• Financial planning and clear goals are crucial for a successful micro-retirement experience.

"Quiet vacationing" had its moment. "Lazy girl jobs" came and went.

The latest workplace buzzword — "micro-retirement" — reflects another shift toward work-life balance among young people.

Similar to a sabbatical, a micro-retirement (also known as a mini-retirement) is when a worker takes a significant break from their career that could last a couple of months or even years.

Jes Osrow, cofounder of HR consultancy The Rise Journey, told Business Insider that micro-retirement is a "flexible concept that varies depending on who you ask."

For some, Osrow said, it's an opportunity to combat burnout and pursue "personal passions" outside the office. And for others, it could be the perfect time to start a new side hustle.

Anaïs Felt falls into the former category. Speaking to BI in October, Felt said she took a micro-retirement from her Silicon Valley tech job year after experiencing burnout.

"It felt like it would be good for me — but also good for my future employer — if I went into my next role feeling fully energized and feeling conviction in that next step," she said.

Felt's experience isn't unique. SHRM's Employee Mental Health in 2024 Research Series found that 44% of 1,405 American workers surveyed experience burnout at work.

Meanwhile, 44% of workers under 30 told Pew Research in May that they were very satisfied with their job, compared with 67% of workers 65 and older.

How to micro-retire successfully

Michael Lopez, a career coach who works with companies and individuals, told BI that micro-retirement seems to be "gaining in popularity."

However, he added that a person's ability to micro-retire successfully is predominantly driven by their personal economic circumstances.

While some companies offer sabbaticals, career coach and author Tim Toterhi recommends that those who don't have this option make a long-term plan to ensure they will be financially stable.

"Do you have the financial wherewithal to go without a paycheck for an extended period?" Toterhi said. "How will you secure healthcare? And how will you navigate financial emergencies should they arise?"

Meanwhile, Osrow suggests setting "clear, specific goals" to make sure you reap the most benefits from micro-retirement.

Brittany Foley, a 26-year-old based in Boston, told The Cut that she wasn't enjoying her consulting job before taking a micro-retirement.

Foley planned everything out. She would spend the time off writing her book while working at a restaurant part-time. She had a year's worth of expenses saved up from setting aside a third of her monthly income and bonuses.

"With other people my age, there's so much pressure to chase promotion cycles and raises, and everyone is so burned out," she said. "I figured this is actually the best time to take time off work when I don't have kids or other dependents."

Foley's comments reflect a wider cultural shift among Gen Zers who are prioritizing their personal lives over their careers.

Preparing to return to work?

Toterhi and Orsow said another thing workers should plan for is their eventual return to the workplace.

Osrow said the first thing to consider is what "coming back" means for you personally.

"Is it returning with a new set of skills, or when you've reached a certain financial benchmark?" she said. "Setting these goals helps ensure that your time off is meaningful and intentional, giving you clear metrics to measure success."

However, this advice may not apply to everyone — especially those who take a micro-retirement before switching careers.

Lopez said he often counsels people to "have a plan but not too much of a plan."

"Having too much structure can get in the way of the natural process of finding your next life passion," he said.

For Foley, it's been over a year and a half since the start of her micro-retirement. In August, she told The Cut that she looking for a new corporate role because her savings were running low.

"Sometimes people I know from college will come into the restaurant, and when they see me working there, I can tell they're like, 'Oh my God, this girl's life has gone down the tubes. What happened?'" she said.

"I wish becoming a server or doing another noncorporate job wasn't frowned upon that way. Working part-time to support yourself and pursue your other passions shouldn't be a mark against you," she added.