Is a ‘mini-retirement’ more financially realistic than retiring early? It can be, here’s how

Is a ‘mini-retirement’ more financially realistic than retiring early? It can be, here’s how

Dubai: For the most part, people who retire in their 30s or 40s are those who have been involved in the FIRE (Financial Independence Retire Early) movement because they have severely cut back on expenses and managed to become millionaires before they quit the workforce. That’s the reality. If you’ve realised that an early retirement is not your cup of tea because it's not financially feasible for you, but you still wish you could retire early, a ‘mini-retirement’ may suit your needs. UAE-based financial planners walk us through the risks and rewards of taking such a step. But firstly, what is it? “A ‘mini-retirement’ is a cross between a work sabbatical and the traditional retirement aimed at providing a much-needed career break used to rethink retirement goals – but only when he or she is in the financial position to do so,” said Abu Dhabi-based financial planner Andrea Barbara. “It usually lasts for a few months or up to a year. However, financial advisors widely recommend that you should save 50 per cent more than you expect to need during your mini-retirement. The timing and frequency of mini-retirements is also completely up to you.” Aside from planning your finances and