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Many people say they want to phase in and out of work and retirement. On paper, it sounds possible.
And in reality, it is, according to Jillian Johnsrud, author of “Retire Often.”
In a recent episode of the Decoding Retirement podcast, Johnsrud discussed the growing debate about hustle culture sparked by tech titans Jeff Bezos and Eric Schmidt. They’ve argued that true growth requires total commitment and that “balance” can be a euphemism for mediocrity.
According to Johnsrud, there’s value in going all in on your career. “But I think of it like sprinting,” she said. “Sprinting is great, but you can’t sprint forever. You sprint, then you walk. It’s like interval training.”
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Johnsrud said workers need seasons of intensity and seasons of rest.
“Employers today often burn through our human capital in three to five years and replace workers when they’re burned out,” she said. “If they’re not invested in our long-term well-being, then we have to be. Sprint when you need to — but also rest.”
For Johnsrud, that rest is what she calls a “mini retirement.”
She explained that a mini retirement doesn’t mean sitting on the couch for a month. Instead, she recommended planning three to five activities a day that “give you more energy than they take,” such as going for walks, doing yoga, and having lunches with friends.
To be sure, taking time off for a mini retirement might seem financially impossible, especially for younger workers. But Johnsrud said there’s a smart way to do it without putting your finances at risk.
“Start small,” she said. “I define a mini retirement as a month or more off from your nine-to-five to focus on something meaningful. Negotiate a month off between jobs. Taking even one every decade — in your 20s, 30s, and 40s — can reset motivation and build perspective.”
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So what are the financial nuts and bolts of taking a mini retirement?
“For your first mini retirement, cash savings work fine,” Johnsrud said. “Later, you can use investments, real estate, or freelance income. For example, one friend wants to move to Europe and is freelancing now to secure a visa and income there. Once people experience a mini retirement, they often restructure finances to make it a regular part of life.”
Some workers worry about the impact of a mini retirement on long-term financial goals such as 401(k) contributions or future Social Security benefits. Johnsrud said that, with planning, mini retirements can fit within a sustainable financial strategy.
A mini retirement may be more possible than many workers think. (Getty Images). · ZlobiWanKenobi via Getty Images
Over time, a well-planned month off can even enhance your finances, she said.
She offered a personal example: “We took one month off to buy and renovate a house that we later rented out for seven years,” she said. “That one month probably cost us $3,000 or $5,000 of income, but now the house has appreciated by about $300,000. Think strategically — each break can serve a different purpose: rest, skill-building, or wealth-building.”
Mini retirements can also affect taxes and health coverage. Johnsrud recommended using those lower-income years strategically.
“Do Roth conversions or harvest capital gains,” she said. “And always keep health insurance. For short breaks, stay on employer coverage or use COBRA. For longer ones, check ACA marketplace plans. With lower income, subsidies can make coverage affordable.”
What hurdles do workers face when contemplating a mini retirement, and how can they overcome them?
Some employees fear losing career momentum or missing promotions if they take time off. But Johnsrud said that mindset needs to change.
“High performers rest because they care about outcomes,” she said. “Think about halftime in sports — it’s not laziness. It’s strategy. Athletes rest to win the second half. If you return 10% faster or sharper, you don’t just win 10% more races — you win all of them.”
Maintaining relevant skills is also critical, she added. “If unemployment is high in your field or you’re nearing retirement age, negotiate shorter breaks — maybe a month off instead of fully stepping away,” she said. “Mini retirements can also be used to upskill. Take time off to get a certification or learn new tools.”
“It just takes planning,” she added. “Many people have already taken ‘accidental’ mini retirements after layoffs, between jobs, or caring for family. My hope is that people plan them intentionally to get the most benefit.”
Got questions about retirement? Email Robert Powell at yfpodcast@yahooinc.com, and we’ll do our best to answer it in a future episode of Decoding Retirement.
Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service.
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