Is your retirement still decades away? How to take a ‘mini-retirement’ now — without quitting your job.
3 min read
Jillian Johnsrud isn’t planning for just one big retirement at the end of her career. Instead, she plans multiple retirements throughout her working years.
Johnsrud, 40, has already taken more than a dozen “mini-retirements” that have brought her around the world and allowed her time with her family, including her six kids. She’s gone across the U.S. in a camper, visited 27 countries and lived abroad. Johnsrud, who is a coach focused on financial independence and the host of the “Retire Often” podcast, recently published a book — “Retire Often: How Anyone Can Take Multiple Career Breaks to Unlock Adventure, Advance Their Career, and Find Financial Freedom” (Harriman House) — filled with ways others can do the same, all without having to quit their jobs.
Many people dream of seeing the world or taking up a time-consuming hobby, but they’re afraid of leaving behind a stable income and routine. “There is a process,” Johnsrud said. “If you follow the steps, it is not as scary or as complicated as people think it is. I hope the book’s big takeaway is that it is actually really possible and not only great for your personal life, but [your] career and financial life.”
Johnsrud spoke with MarketWatch about what a mini-retirement is and how to make it happen. Here are three things someone looking to plan a mini-retirement should do first.
Start off short
Mini-retirements can be as long or as short as a person wants, but a month is a good starting point, according to Johnsrud. “There are tons of benefits and the risk costs are very low,” she said.
Those who want to take longer mini-retirements — such as for three or six months — might want to plan those in between jobs, such as when they’re looking to switch employers. Many workers in their 20s, 30s and 40s tend to get higher raises by switching employers throughout their careers instead of staying at the same job, Johnsrud noted. By looking ahead in their career plan, they can carve out periods where they can take time off to take a long trip or find a new adventure, she said. At the same time, they can increase their earnings when they move on to the next employer.
Be open about time off with employers
Embrace the topic of time off when interviewing for new jobs, Johnsrud said. Interviewees should describe the positive experience and highlight interesting aspects of the mini-retirement.
Years ago, Johnsrud took a 10-week road trip with five of her kids. “It was a perfect thing that we did,” she said, and she framed it as a one-time event: Ten weeks, 10 national parks — not something she would do every summer.
When talking to potential future employers, focus on how such an experience makes you a better employee. For example, her trip took planning and coordination.
“People who pull it off tend to be more innovative, exciting and interesting, and it gives something fun and cool to talk about during the interview,” she said. “You can frame it as a way of, ‘I went off and did this cool thing and had a good time, and now I’m ready to be 100% at work.’”
Don’t forget your actual retirement
Mini-retirements are not meant to replace the final retirement at the end of one’s career, and money earmarked for that next chapter shouldn’t be used to fund these shorter stints, Johnsrud said.
Johnsrud recommends saving an additional 6.5% of income for mini-retirements, as opposed to splitting retirement savings between shorter- and longer-term plans. That savings rate could help a person take off one month every other year, though some people might choose to take more or less time off over longer or shorter periods of time.
“The reality is, for a lot of Americans, with the current state of the economy and housing costs, they might have longer working careers,” she noted. “They probably aren’t going to be able to retire at 62.”
Mini-retirements are “a great opportunity to sprinkle in these things — because when they get to 70, they might not be able to do all the things they postponed to their real retirement age,” Johnsrud said.
