Millennials plan to swap retirement for mid-career breaks

By 2020, Millennials will make up 35 per cent of the global workforce. And while 33 per cent of Millennials across the world suspect they’ll retire between 65 and 69, about one in ten say they’ll likely “work until the die,” according to a sweeping survey of 19,000 Millennials across 25 countries by employment firm ManpowerGroup.

In Japan, where work culture often dictates long hours and overtime is commonplace, that number rises to 37 per cent of Millennials not expecting to retire. It’s a stark contrast to the 14 per cent of Canadians in the demographic who anticipate working their whole lives.

In the survey, ManpowerGroup likens the Millennial’s career paths to an ultramarathon.

“Early retirement with a gold watch at 50 or even 60 is an antique attitude,” says the report. “Rather than having one job for life, Millennials think about careers in waves with changing paths, pace and regular breaks.”

But the fragmented expectations around retirement show the divergence of the demographic, the differing mindsets of Millennials from Baby Boomers.

“There’s a portion of Millennials who are more on the traditional path in their thinking: here’s what my parents did, they lived at home, they tucked everything away towards a mortgage, got good jobs (to) pay off the mortgage, have kids,” says Nathan Parkhouse, certified financial planner at Parkhouse Financial. “Then there’s the other section which is simply – no debt, not tied to a house and even if you have children you are not necessarily tied to a certain city (by your job).”

But despite the differing views on retirement, the survey found that 84 per cent of Millennials see significant breaks along the way, putting leisure and personal wellbeing at the forefront. Four in 10 say they plan to take significant breaks for relaxation, travel or vacations.

It’s a big diversion from past generations.

“Millennials prioritize three things when choosing where and how they work: money, security and time off,” says the report. “They want to be rewarded for their effort, feel secure in their employment and still have the freedom to stop and refuel once in a while.”

The survey also found Millennials ascribed high value to enjoying their job and colleagues as well as having the ability to work flexibly and develop new skills.

They’re also willing to work hard. Seventy-three percent put in more than 40 hours a week, and almost a quarter work over 50 hours. 26 per cent have two or more jobs.

“Contrary to the lazy label, the data tell a different story,” says the report. “Millennials are working as hard, if not harder, than other generations.”

Parkhouse admits that for a demographic still 30 years or so away from retirement, the findings aren’t incredibly shocking but he’s quick to point out that while a fraction of Canadians say they will work forever, there’s also a large chunk not even thinking about retirement.

“What I think is more important for Millennials is understanding liquidity, understanding the difference between cash flow and capital,” says the financial planner. “That’s the biggest lesson a 25 or 30 year old needs to focus on – you don’t have any debt, okay, but have you built up a bunch of capital? Because that is how one retires.”