If you’re the type of person who is often on the brink of burnout or looking for a better work-life balance, you may understandably be tempted by the idea of the lazy job. It’s a growing trend which sees people slowing down the pace at work and doing the very minimum required – often with a trade-off when it comes to career progression.
This, along with bare minimum Mondays, has become a major theme of post-pandemic years. It follows on from the quiet quitting trend (doing only what your job demands, and nothing more). But what does it actually mean – and what price might you end up paying for downsizing your career?
The rise of the lazy job
The lazy job trend has emerged on social media over the past couple of years, with posts getting thousands of views. While it’s often associated with Gen Z and Millennial workers in white-collar jobs, the real prevalence of this approach to working life in any group is far from clear. There are a host of reasons why people might favour a more relaxed approach to their career, including personal well-being and work-life balance. One distinct pattern is a post-pandemic desire to strike a better work-life balance.
But before you jump in with both feet, think about the longer-term implications, as there could be some serious consequences in later life. Research in 2024 from Standard Life, part of Phoenix Group, warns of the potentially serious retirement impact of earning less for longer. We’ve set out the detailed workings below, but in simple terms, if your pay only rises by 1% a year – as opposed to the traditional career progression of 3.5% a year – this can make a big difference to the pot you build for a time when you are no longer working. In short, this could significantly knock down your retirement income.
Traditional career progression v lazy job
According to the findings, someone who started working with a salary of £25,000 per year – and who paid the minimum monthly auto-enrolment contributions (5% employee and 3% employer) from the age of 22 – could have a total retirement fund of £488,000 by the age of 68. This is based on their salary increasing by 3.5% a year, illustrating traditional career progression.
If, by contrast, that person chose to reject the career ladder, and their pay rose by just 1% a year, the total retirement fund could fall to £302,000 — a huge £186,000 less than if they had seen a consistent 3.5% rise. Further, if the individual had embraced career development and received a 5% pay rise each year, they could have a very healthy pot of £680,000 at retirement. (The figures assume 5% investment growth and a 1% investment charge; figures are not adjusted for inflation).
Be sure to factor this into your decision-making
If you are contemplating taking steps to slow down the pace at work, you need to tread very carefully. Gail Izat from Standard Life said, “The lazy job and bare minimum Mondays trends have come to be associated with Gen Z and younger millennials. In reality, stereotyping different generations is unhelpful, and people are likely to have similar goals for their financial security and overall well-being.”
The issue is that while there’s some evidence that younger generations place a greater emphasis on wellness at work, this isn’t always compatible with career progression. In other words, it’s worth remembering that you can’t afford to ignore long-term saving as part of your overall well-being.
Seize the opportunity to save while you’re working
Separate new research from Canada Life, which focused on retirement regrets, also had an important message for workers. Almost one in five retirees told the firm that they would have increased pension savings, and one in ten wished they’d made lifestyle adjustments while working to save more for their later years. Nearly one in ten say they should have chosen to retire later than they did.
Tom Evans from Canada Life said: “With the benefit of hindsight, there are some valuable lessons for us all to learn from the current generation of retirees. Most regrets centre around money, wishing more was saved – and earlier – and often making choices around lifestyle to allow that extra cash to go into the pension.”
Many retirees also wish they’d stayed on and worked later. Evans added: “This can have significant positive effects on both financial well-being and mental health.”
How can I work out if I’m on track?
Having an idea of the standard of living you’d like in retirement – and the size of pot needed to achieve it – can be very helpful when factoring long-term savings into your plans. The good news is that there are lots of different tools you can use to see how you’re doing – even early in your career:
Use online pension calculators
Such as this one from Standard Life, as well as this one from Aviva, and this one from Royal London. You can also check out the Pension and Lifetime Association’s ‘Retirement Living Standards’ to help you plan your retirement goals.
Check your National Insurance record
This is see if there are any gaps you can plug to make up any shortfalls. There is now an online Government service you can use to pay for missing years. We look further at how to boost your state pension.
Boost overall retirement wealth
Finding and consolidating lost pensions can help achieve this.
Be prepared to seek advice at the earliest opportunity
An adviser can tell if you are on track – and help you keep your plan on track.
Get the best deal for your investments
This includes the platform you use. You can compare investment platforms for free using our comparison tools.
Photo by I.Wierink-van Wetten on Canva
