Retirement, which has long been understood as a single life event bookmarked at the end of a career, is being quietly replaced by a new rhythm: multi retirements.
A new global report by HSBC has found that retirement, which has long been understood as a single life event bookmarked at the end of a career, is being quietly replaced by a new concept: multi retirements – something that the Bank’s Head of International Wealth and Premier Banking in the Channel Islands and Isle of Man believes should resonate in the islands, given their strengths as private wealth centres.
The 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 – now being referred to as ‘multi retirements’.
According to the study, almost half (49%) of those intending to take a mini retirement plan to take between two and three, with a preferred duration of 6 to 12 months (32%), and the ideal age to take the first break being 47 years old. This trend can be seen across all generations, led by Gen Z and Millennials who aspire to take an average of three mini retirements in their lifetime.
Other key findings include:
- Gen Z and Millennials are leading the charge in planning multiple intentional pauses in their careers to focus on family, career growth, and personal passions.
- This new work-retire-work model follows a six-year cycle, with 49% of those considering a mini retirement planning to take between two and three across their lifetime to reflect, reset, and reprioritise.
- 87% of those who have taken at least one mini retirement say it positively impacted their overall quality of life.
40% estimate they will spend up to $100,000 (USD) per break. Some plan to spend more, with the estimated global average reaching $339,800 – highlighting the level of planning that goes into making these breaks count.
When it comes to funding a mini retirement, income sources vary across generations. Gen Z look to starting a business (31%) and relying on income from digital products or social media (31%), exploring entrepreneurial endeavours alongside savings and investments. Millennials (49%), Gen X (53%), and Baby Boomers (49%) predominantly plan to dip into personal savings, with Baby Boomers also drawing from pensions or retirement accounts (37%), to fund their multi retirements.
Globally, top motivations for taking a mini retirement include:
- Spending quality time with family, including children and elderly parents (34%)
- Focusing on individual wellbeing (31%)
- Traveling and exploring new places and cultures without constraints of standard vacations (30%)
- Pursuing lifelong passions, personal development, and growth activities (28%)
- Stepping back from work, reassessing career goals, and potentially pivoting to new opportunities (25%).
Commenting on the findings of the report, Alvaro Teixeira (pictured), Head of International Wealth and Premier Banking, HSBC Channel Islands and Isle of Man, said: “As finance centres specialising in private wealth services, these findings should really resonate across the islands. The data shows multi retirements are not a generational fad or a more traditional career break. Multi retirements are a mindset shift, with some individuals increasingly taking time out to focus on living their wealth, not just accumulating it. They aren’t viewing it as stopping work or their careers, rather, taking new directions that feel more aligned to their values and needs of their families.
“What’s clear is that achieving these goals requires careful planning and foresight, and the private wealth sector in the islands should be alive and responsive to that, as we look to help clients navigate the complexities of planning for a multi-stage retirement.”
