- Gen X and Millennials are leading the charge in the US in planning mini retirements to focus on family and personal passions.
- This new “work-retire-work model” follows a five-year cycle, with 47% of those in the U.S. considering a mini retirement planning to take between two and three across their lifetime.
- 65% of U.S. respondents believe a mini retirement will improve their quality of life.
Retirement is being quietly replaced by a new rhythm. HSBC’s Quality of Life: Affluent Investor Snapshot report, which surveyed more than 10,000 affluent adults in 12 markets around the world, reveals people are taking multiple intentional pauses from their career, to realign or reinvent themselves in breaks called “multi retirements1.”
In the U.S., study results show that 37% of respondents plan to take a mini retirement, with a preferred duration of 6 to 12 months and the ideal age to take the first break being 46 years old. This trend can be seen across all generations, led by Gen X and Millennials who aspire to take an average of three mini retirements in their lifetime. Gen Z (2.9) and Baby Boomers (2.9) follow closely behind.
The research shows that most U.S. respondents (40%) intend to spend under $100,000 during their mini retirement with the top three income sources being personal savings (49%); dividends, interest, and capital gains (41%); and part-time jobs or freelance projects (36%). On average, U.S. respondents aim to save about $530,000 before starting a mini retirement.
“Wealth is about freedom, choice, and purposeful living,” says HSBC U.S. Head of International Wealth and Private Banking Racquel Oden. “Multi retirements are offering individuals the ability to start a business, help their community, pursue passions, and make a lasting impact on the world around them. This journey requires careful planning, saving and budgeting to achieve these long-term objectives.”
According to the global study results, the majority (87%) of those who have taken mini retirements have described them as enhancing their overall quality of life.
In the U.S., Gen Z are the most confident cohort in planning and managing multi retirements, with 77% saying they feel well-prepared – including assessing their current financial situation and creating a structured plan for re-entry into the job market. They are closely followed by Millennials (76%), Baby Boomers (74%), and Gen X (70%).
The top three challenges in the U.S. associated with mini retirements included financial security concerns (39%); family obligations and responsibilities (34%); and anxiety about re-entering the job market (32%).
Top Generational Motivations for a Mini Retirement in the U.S.
- Gen Z
- Seek to pursue lifelong passions, personal development, and growth activities (33%)
- Millennials
- Spend quality time with family (38%)
- Gen X
- Travel and explore without constraints (38%)
- Boomers
- Focus on Individual wellbeing (40%)
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