Taking short career breaks during working life could boost retirement savings by £42,000, new analysis from Standard Life has revealed.

The research suggests that while a “micro-retirement” temporarily reduces pension contributions, it can ultimately increase retirement funds in the long run.


Standard Life’s findings indicate that taking a one-year break at age 30, combined with a longer career, could lead to substantially higher pension savings compared to early retirement.

The concept of “micro-retirements” has emerged as a new trend among Generation Z and Millennial workers, who take intentional short breaks throughout their careers to improve work-life balance.

Pensioner and younger woman look at laptopBritons are urged to start pension planning as early as possiblePEXELS

The approach comes as Standard Life’s Retirement Voice 2024 research reveals Britons hope to retire at age 62 on average.

This target is six years earlier than the expected State Pension age for those retiring after 2044-2046.

Phoenix Insights found that UK workers generally hold more negative views about work compared to international counterparts.

Standard Life’s calculations show someone starting work at 22 on £25,000 annually, with minimum auto-enrolment contributions, could accumulate £163,000 by age 62.

Taking a year’s break at 30 and retiring at 62 would reduce the pot by £4,000.

However, extending work until 68 after a micro-retirement at 30 could result in a £205,000 pension pot in today’s prices.

The figures assume 3.5 per cent annual salary growth, five per cent investment growth, and account for two per cent inflation.

Mike Ambery, Retirement Savings Director at Standard Life, said: “Taking a micro-retirement might mean a temporary pause in pension contributions, however the trend offers a unique opportunity for your proper retirement savings as well as shorter-term personal wellbeing.”

He added: “As you tend to be at your peak earning potential later in your career, saving for a few extra years just before retirement could have a disproportionately positive impact.”

Ambery noted that longer life expectancy means retiring later with a bigger pension could help ensure savings last longer.

The micro-retirement trend reflects a broader shift in how people view their careers, moving away from traditional structures of education, work and retirement.

Standard Life suggests this more fluid approach to working life could lead to greater sustainability in careers.

With proper planning and support, the analysis indicates workers can achieve both improved work-life balance and financial security in retirement.

This emerging pattern acknowledges that future career paths are likely to be more flexible than conventional models.