Comparing mini-retirement plans
Example: you are 30, have $50,000 invested, add $1,500 a month at 7% a year, and want $3,000 a month in retirement. Without breaks you reach financial independence at 48. Each break costs $2,500 a month in spending plus the contributions you skip.
| Plan | Time off | Less at 65 | FI age | FI delay | Open in calculator |
|---|---|---|---|---|---|
| One 12-month break at 35 | 1 year | $390,965 | 49 y 8 m | 1 year 8 months | Open → |
| Three 4-month breaks (32, 37, 42) | 1 year | $354,635 | 49 y 6 m | 1 year 6 months | Open → |
| Two 6-month breaks (35, 40) | 1 year | $334,859 | 49 y 5 m | 1 year 5 months | Open → |
| 6 months every 5 years (30–50) | 2 years 6 months | $779,259 | 51 y 6 m | 3 years 6 months | Open → |
What the numbers show
Early breaks are the most expensive in money, because the savings you skip at 30 would have had the longest to grow. Later breaks cost less at retirement but come when you may have more responsibilities.
Measured in time, the cost is easier to judge. Taking 2 years 6 months off across your career in this example delays financial independence by 3 years 6 months. Whether that is worth it is your call; the calculator gives you the trade-off in plain numbers.
How to plan a mini-retirement
- Decide what each break is for and how long it needs to be.
- Estimate your monthly spend during the break, including health cover.
- Add each break to the calculator and check your FI date.
- Move breaks earlier or later, or shorten them, until the trade-off works for you.
All figures are computed with the Pausefi calculator using constant returns and no inflation. They are illustrations, not financial advice.