The Growing Popularity of Career Breaks

Increasing numbers of high-earning professionals are embracing career breaks, viewing them not just as necessary pauses, but as valuable opportunities for personal growth and exploration. According to a LinkedIn survey, approximately two-thirds of employees have taken extended breaks from work. In the UK, roughly 90,000 individuals opt for career breaks each year, emphasizing a shift from necessity to choice.

Real-Life Experiences

One such instance is Greg Whittaker, a 39-year-old former senior legal recruiter. After navigating a challenging IVF journey, he took a break to invest more time in raising his young children, declaring, “I felt I was missing more than I wanted to of their young lives.” Despite having a financial buffer, Greg acknowledges that the break significantly impacted his savings.

The Financial Implications

The financial burden of taking a career break is a major consideration. For instance, research from Barnett Waddingham indicates that a two-year unpaid hiatus could lead to a pension shortfall of approximately £30,688 for a 30-year-old earning £28,600 annually.

In an effort to quantify the long-term financial effects of a career break, economist Michael Madowitz and his wife developed a modeling tool. When applied to a hypothetical 30-year-old American earning $150,000, the tool revealed that a five-year career break could result in over $1.4 million in lost wages and retirement benefits by retirement age. Madowitz emphasizes that the purpose of the calculator is to provide families with a factual basis for discussing potential trade-offs associated with career breaks.

Who Takes Career Breaks?

This trend is not limited to parents. Young professionals, such as a 30-year-old named Tom, are also seeking breaks for travel and personal enrichment. He indicates that after saving diligently during his 20s, he felt it was time to invest in experiences rather than property. Tom estimates he can afford to spend approximately one-third of his savings during his year-long hiatus.

Data shows that many millennials are planning similar breaks, with more than half of those under 34 in the UK considering extended time away from work.

The Challenge of Returning to Work

Despite the enriching experiences gained, returning to work can be daunting. Individuals, including Ryan, who took time off to focus on mental health, often face extended job searches upon attempting a return; Ryan has been job hunting for nearly two years. Research from Harvard Business School highlights a concerning trend: roughly half of employers dismiss candidates with CV gaps of more than six months.

Career Breaks and Gender Disparities

Women remain the most likely group to take career breaks, often due to caregiving responsibilities. Approximately 1.5 million women in the UK are currently not in paid employment for such reasons. Studies have shown that women who take breaks can experience significant financial repercussions, including substantial salary drops upon reentry into the workforce.

To combat these challenges, initiatives like “returnships” have emerged. These programs aim to provide structured re-entry opportunities for professionals returning after a significant break, offering skills training and support.

Preparing for a Career Break

Questions to Consider Before Taking a Break

• Can I afford a prolonged job search? Understand that breaks often extend beyond original plans, and job hunting can be lengthy.
• How will I maintain professional relevance? Engage in courses or networking to keep skills current and relationships strong.
• Have I conducted a thorough cost-benefit analysis? Evaluate the long-term effects on career trajectory and financial security.
• Do I have a structured re-entry plan? Set realistic expectations and consider programs that facilitate a smoother transition back to work.

Conclusion: Making Informed Choices

While a career break can offer refreshing experiences and personal growth, it is crucial to be aware of the associated financial and career implications. With careful planning and awareness, individuals can navigate this journey thoughtfully. “It’s still not easy [to be a returner],” says Carol Fishman Cohen, a leader in the return-to-work movement. Ultimately, awareness and preparation are vital for those considering this path.