Taking time out from work for travel, study, family or wellbeing is becoming more common as career and retirement patterns shift - but financial experts warn that preparation is essential.

Research by Canada Life earlier this year found that nearly half of adults (49%) believe that longer lifespans will mean they need to adjust their plans for work and retirement, possibly by taking a sabbatical or career break. A quarter (26%) of those surveyed had already taken an extended period away from work.

John Chew, a technical specialist in pensions, tax and estate planning at Canada Life, said career breaks can be hugely positive if carefully thought through. “Taking a career break or sabbatical can be a fantastic investment in your wellbeing or career development - but it pays to plan,” he said.

Among the key points highlighted were:

Have a clear plan. Chew said time out should not be a spur-of-the-moment decision. Reasons could range from caring responsibilities and retraining to travel or simply a reset for mental health. Defining the purpose helps ensure the break feels like progress, not a setback.

Build financial reserves. As income often pauses but bills continue, saving six to 12 months in advance is advisable. Essential costs such as housing, utilities and food should be factored in, alongside discretionary spending like travel or study. A buffer for unexpected costs is also recommended.

Protect pensions and entitlements. Contributions to workplace pensions usually stop during unpaid leave. Where possible, continuing payments into a pension or considering voluntary National Insurance contributions can protect future retirement income.

Stay aware of tax rules. Lower earnings may create the chance to reclaim tax, while working abroad could trigger overseas tax obligations. Chew recommended checking with HMRC and employers in advance.

Clarify return arrangements. Written agreements with employers on return dates, benefits and holiday entitlements can reduce uncertainty. Even if self-funded, maintaining healthcare or insurance benefits during a break may still be wise.

Stay connected. Updating LinkedIn, joining occasional webinars or keeping in touch with colleagues helps prevent a sabbatical from becoming a “career gap”. Exiting on good terms and supporting handovers can also smooth re-entry.

Chew concluded: “As life expectancy rises, the desire for time away from work will grow too. With the right planning, a career break can enhance wellbeing and long-term prospects rather than hinder them.”