If You Have Corporate Burnout, Could A Mini Retirement Be The Unexpected Cure?

There's a famous quote attributed to George Bernard Shaw that (paraphrased) observes, "Youth is wasted on the young." Indeed, why not travel, spend time with family, or enjoy active hobbies while you're still relatively young and physically able. Ah yes, there's that pesky obligation called work. Though increasingly, the traditional definition of retirement in your early 60s is being challenged. One such way is what's called "mini retirement."

Just like it sounds, a mini retirement is a pause or break in your career that's longer than a typical vacation. There's certainly no concrete rule about the duration of a mini retirement, but one or two years seems to be a recurring theme. Afterward, you can either return to your prior employer — presumably, this arrangement will be approved in advance — or seek a new job somewhere else.

Conventional wisdom might dictate such pauses could be bad for your career, but in reality, the opposite is sometimes true. For example, modern employees are often stressed by overwhelming workloads and unrealistically short deadlines. As well, certain jobs can also be physically taxing. If your job is highly demanding, a hiatus could relieve that stress, improve your state of mind, even help establish healthier sleep patterns. When you return to the workplace, you'll be recharged, refreshed, and more focused.

Work patterns are admittedly changing in favor of an improved work-life balance, like the four-day workweek. However, that doesn't mean you can throw all caution to the wind, either. For instance, it's not ideal to take your sabbatical during the prime years of your career. Per the U.S. Bureau of Labor Statistics, the peak earning years for male workers occur between the ages of 45 and 54, so taking a break during those years is probably best avoided.

As well, you don't want to leave your employer in an uncomfortable situation by taking a timeout in the middle of an important project that you're involved with. Stressful though it may be, try to stick it out until a clean break-off point presents itself, and then take your mini retirement. That strategy will look more responsible to future employers. On the other hand, quitting during a period of success or upon the completion of an important milestone can be highly advantageous. You can leave your job on a proverbial high note, with a strong resume and full confidence intact for speaking later on with companies once the time comes for your return.

Besides the timing of a mini retirement, there's also the financial implications to consider. Can you afford to be without employment income for a year or two or more? Also, note that even financially secure workers with a considerable amount of savings will draw down those funds during their hiatus from work. Those are funds that would otherwise be invested and likely grow through stock market gains or fixed-income security interest payments.

That said, there's always the opportunity to work later into life following a break to recharge. As well, mini retirement could be a good practice run for the real thing in terms of exploring lifestyle choices, geographical location, and how much money you might need to permanently retire. Even if you're less-than-wealthy, a mini retirement may still be possible through some creative thinking. For instance, if you'll be traveling or residing in a different state — or even country — during your mini retirement, consider renting out your primary residence to generate some passive income.

We started this article with a quote, so let's end with one as well. There's an old adage that advises when going on vacation, you should, "pack half as many clothes and twice as much money" as you think you'll need. That advice seems just as applicable to mini retirement, too. If a recession occurs or the unemployment rate should tick up during your career break, know that it could prove more challenging to return to the workforce, so be adequately prepared.