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Experts explain that younger generations are shifting their priorities, no longer waiting for retirement to enjoy life but taking intentional breaks between jobs.
While Gen Z embraces career breaks, people of the elder generation are returning to the workforce. (Representative Image)
The workplace is evolving and Gen Z is leading the way by prioritising work-life balance. Last year, they reportedly outnumbered elder generation employees in the American workforce, reshaping corporate culture. Meanwhile, a countertrend is emerging: 13 percent of retirees plan to re-enter the workforce in 2025 as part of ‘The Great Retiree Return.’ While seasoned professionals head back to work, younger employees are stepping away for ‘micro-retirement.’ But what does this mean and how can companies adapt?
Micro-Retirement VS Traditional Retirement
Guy Thornton, founder of Practice Aptitude Tests, explained that younger generations are shifting their priorities, no longer waiting for retirement to enjoy life but taking intentional breaks between jobs.
“Whether it’s time off to travel, to have a well-deserved break from working or to take up other passions, the micro-retirement trend is the latest buzz in the world of corporate work. Younger people prioritise mental health, personal fulfilment and meaningful experiences over a singular focus on career longevity and progression,” he shared with Forbes.
Social media has fueled this trend. “It has amplified the desire to seize opportunities for memorable experiences as they arise and to explore the world, pursue hobbies, or engage in passion projects while they’re young and physically capable,” Thornton added.
While taking a break may impact short-term savings, Thornton argues it can ultimately benefit long-term financial health.
Advancements in job search technology have also reduced fears of career setbacks. “Although some may intend to stop working for an extended period, the rise in remote work means individuals can still maintain part-time or project-based roles if they desire,” he added.
The Great Retiree Return VS Micro-Retirement
While Gen Z embraces career breaks, people of the elder generation are returning to the workforce. Shanna Milford, US HR lead at IRIS Software Group, explained why.
“For the 13% of retirees planning to re-enter the workforce in 2025, financial pressures like rising living costs (69%) and non-medical debt (34%) are key drivers. Beyond financial stability, returning to work offers retirees social benefits, a renewed sense of purpose and opportunities to slow down without throwing in the towel,” she told Forbes.
Milford highlights the advantages of generational diversity, as older employees bring wisdom and experience that help bridge knowledge gaps. This return also benefits employers.
Finding Balance: A Workplace For All Generations
According to Forbes, to accommodate retirees, employers should offer flexible roles such as part-time or project-based positions, address ageism and provide job training and technology upskilling. Tailored benefits like additional healthcare options or phased retirement plans could also help attract and retain them.
Similarly, experts argue companies should adapt to Gen Z’s needs. Ultimately, businesses must foster an inclusive environment where all employees feel valued, whether re-entering the workforce or stepping away for a micro-retirement.
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