'Mini-retirement' breaks are trending in UAE, says HSBC - here's why

Dubai: ‘Mini-retirement breaks’ are the new trend in the UAE – especially among those who can afford to take these. And this is not limited to those who are approaching their retirements – millennials and even Gen Z are open to the idea of ‘multiple pauses’ to their careers.

These intention decisions are done to ‘focus on family, career growth, and personal passions, with Gen Z aspiring to take the most-mini retirements compared to their older counterparts’, according to a new report from HSBC that tracks what wealthy individuals plan to do.

Now, there could be pauses taken to launch a business, or be able to live an ‘international lifestyle’.

But those taking such career breaks are aware of the challenges they could face – the main ones being the ‘anxiety about re-entering the job market (34%), family obligations (33%), and healthcare benefit concerns (33%)’.

“Of the UAE respondents who plan to take a mini retirement, most plan to fund their breaks through personal savings (40%), investment returns (39%), and rental income (37%),” says the HSBC's Affluent Investors' Snapshot'.

Wealth generated through property investments in Dubai and the UAE have been factors in individuals taking early retirements – or getting into a business they are passionate about. This was seen in the years after Covid, when Dubai property prices bounced back and created a sustained wealth generation.

“The data shows multi-retirements are not a generational fad or a more traditional ‘career break’,” said Dr. Cora Pettipas, Financial Planner and Retirement Specialist, HSBC. “Multi retirements are a mindset shift, with some individuals increasingly taking time out to focus on living their wealth, not just accumulating it.

“They are creating space for it now – with careful planning to ensure they can fund multiple pauses over the course of their lives.

“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.”

Here are 6 prescriptions suggested by Dr. Cora Pettipas of HSBC:

* Identify what you want to achieve and define the goals you would need to meet to make it happen. 

* Immersing yourself in a new place and culture can be life changing.

* Build a daily routine where you prioritise making progress on your goals, and time for your passions. 

* Create a sensible budget strategy that aligns with your goals and consider how you’ll address your next step with confidence and clarity. 

* Reflect on the relationships you would like to deepen. The impact on your quality of life could be profound. 

* Whether it’s big or small, implement the steps to start living your best life today.