Not waiting for 60+: How mini-retirements are changing life’s timeline, study shows

Retirement is no longer viewed as a single, end-of-career milestone. Increasingly, affluent individuals—including in India—are embracing “mini-retirements”—planned breaks of six to twelve months woven throughout life to rest, explore, or reset. In India, affluent investors estimate needing around Rs 3.5 crore (USD 420,000) for a secure retirement. Many are already diversifying into gold, real estate, and overseas assets while reducing cash holdings by nearly 40%, indicating that if mini-retirements take root here, they will likely be funded through similarly diversified portfolios.

HSBC’s latest Quality of Life report, based on a survey of more than 10,000 high-net-worth individuals across 12 markets, shows this flexible approach is gaining momentum globally.

Key insights

Almost half (49%) of affluent investors expect to take two or three mini-retirements over their lifetime. These breaks typically last 6–12 months, with the first often taken around age 46 or 47. Among those who have already stepped away, an overwhelming 87% report improvements in quality of life. Unlike short sabbaticals, mini-retirements often trigger lasting change—whether that means shifting careers, starting a business, or reclaiming time for personal passions.

Success redefined

The findings highlight a broader shift in values. Wealth is no longer measured solely in bank balances; time, fulfillment, and well-being now carry equal weight. Nearly three-quarters (74%) of those surveyed say mini-retirements enhance their quality of life, signaling how lifestyle goals increasingly shape financial planning. This perspective spans generations: Gen Z and Millennials anticipate around three breaks, while Gen X and Baby Boomers expect just under three—proof that the desire for purposeful pauses cuts across age groups.

Mini-Retirements

Motivations vary, but the most common is family: 34% take these breaks to deepen connections free from work pressures. Another 31% focus on physical and emotional well-being, while 30% pursue travel and cultural exploration. For 28%, mini-retirements are about personal growth—developing new skills or pursuing creative projects. Meanwhile, 25% use the time to rethink careers or even launch new ventures, turning pauses into springboards for reinvention.

 

The balancing act

Mini-retirements demand careful preparation. Affluent individuals save an average of $517,600 per break, though typical spending is about $340,000. Budgets vary significantly—40% plan to spend under $100,000, while others allocate far more.

Personal savings remain the most common funding source across all generations, followed by investment income from dividends, interest, or capital gains. Younger groups often supplement with freelance work or entrepreneurship, while Boomers lean more on pensions. Real estate income is also popular among Millennials, Gen X, and Boomers alike.

Yet risks remain. Over 30% intend to draw from retirement accounts to finance breaks, potentially weakening long-term security. Inflation compounds the challenge: affluent investors now believe they need 34% more savings for a comfortable retirement—about $1.05 million, up from $780,000 the year before.

To balance flexibility with stability, HSBC recommends: evaluate budgets and cash flow, seek expert advice, time breaks strategically within a career, account for healthcare needs, and diversify income sources to preserve retirement savings.