Personal Finance

Tim Ferris says "Retirement is worst-case-scenario insurance. Don’t wait for later to enjoy life" - and he nails it

Joey Frenette

Published: March 6, 2025 9:13 am

Tim Ferris, lifestyle guru and author best-known for the 4-Hour self-help books, has a ton of wisdom to share through his New York Times bestsellers. The 4-Hour Work Week is one of my personal favorite reads that I believe every young person should check out as they set the stage for the rest of their careers. The main premise of the book is around designing an ideal life, rather than subscribing to the traditional career trajectory and retirement. Indeed, retiring in one’s mid-to-late 60s is all too common.

High inflation has made it that much harder to retire. And while not many folks have the income and investment savvy to retire early by embracing the “FIRE” (Financial Independence, Retire Early) movement in their 30s, 40s, or 50s, Ferris argues that waiting around until old age to find fulfillment and enjoyment is not the best move.

Tim Ferris’ views go against the norm. But perhaps he’s onto something!

Indeed, a bit of delayed gratification is never a bad thing. However, when one constantly hustles, leaving very little time for enjoyment and quality time with friends and family, one may be setting themselves on the path towards “burnout.” Undoubtedly, the buzzword has become all too common on social media. And it’s often the result of not being able to find the right work-life balance.

In any case, in his book, Ferris views traditional retirement as a “worse-case-scenario insurance.” Instead of waiting until retirement to enjoy life, Ferris thinks taking mini-retirements (you could call them sabbaticals) is a way that people can find a better balance.

While taking a few years off prior to retirement can be the smart choice, especially for those experiencing symptoms of burnout (or those who are seeking to eventually change careers), I do think that one should ensure they’re in decent enough financial shape to take extended breaks while having enough of a nest egg for an eventual traditional retirement.

The concept of a mini-retirement is very intriguing

Undoubtedly, for those with the means to take the odd mini-retirement, it can be a great way to recharge and put things into perspective. For the many folks who’ve forgone vacations and delayed knocking out the meaningful items on their bucket list, I do think Ferris’ concept of mini-retirement could be right for some, given their financial situation is in order and a mini-retirement won’t completely derail their “traditional” retirement (the permanent one that most Americans take in their 60s).

Of course, before you head into a mini-retirement of your own, I believe it’s wise to consult the services of a financial advisor. The last thing you want is to crack open your nest egg, leaving it in a spot that’ll make it hard to restore. In your first year (or more) of mini-retirement, you’ll need to formulate a sustained budget.

Additionally, you’ll probably want to have a game plan for how you can return to the workforce. After a few years off, it can be a tad trickier to pick up where you left off. Furthermore, for those looking to change careers, looking into options (perhaps credentials or certification) to break into a new role should be considered well before one sets off on their first mini-retirement.

All considered, those who are on track to achieve “FIRE” may wish to consider a Ferris’ concept of a mini-retirement. As I noted in prior pieces, early retirement won’t be for everyone. A lot of early retirees head right back to the workforce after growing bored. In any case, anyone keen on achieving “FIRE” may wish to demo it out first with a mini-retirement if they’re on track to hit their FIRE number (amount needed before retiring early) in short order.

The bottom line

All considered, I think some Ferris nails the point when he encourages people not to delay joy until they’re closing in on their “closing years.” At the end of the day, the right balance isn’t just good for greater life satisfaction, it can be a break needed to recharge and reposition one’s ship for the next act of their career.

As always, sabbaticals aren’t going to be the right answer for everyone, especially for those who are behind on their retirement savings. As such, do understand yourself and have the right conversations with loved ones and someone who can crunch the numbers — ideally, one should be miles ahead in saving for retirement before considering a sabbatical  — to set you on the right path forward.