Taking a Career Break
Taking a break from work isn’t just for the lucky few anymore, more and more people are choosing to step away from their careers to focus on other parts of life. Whether it’s to spend more time with family, go back to study, travel, or simply recharge, a career break can be a great reset.
But before you log off for the last time (at least for a while), it’s worth taking a moment to think about how it might affect your finances and future plans.
Why Take a Career Break?
There are plenty of reasons to hit pause on your career:
Family time: Caring for children or aging parents is one of the most common reasons people take a step back from work. A break can allow for quality time that a regular job might not
Health and well-being: Whether it's recovering from a physical condition or addressing burnout, prioritising your health is a valid reason for taking time off
Education and study: Many people take career breaks to head back to uni, do short courses, or upskill in ways that can benefit their future career
Travel or relocation: A break gives you the chance to see the world, live in a different country or state, or explore different cultures
Career transition: Not sure your current job is the right fit anymore? A career break can give you the time and space to explore something new or simply think about what’s next
Sometimes the decision is made proactively, and other times it’s a result of life circumstances, whatever the reason, a well-thought-out break can be a positive and life-changing experience.
What Could a Career Break Impact?
Even if it’s just for a short period, stepping away from your job can have flow-on effects, especially when it comes to money, career momentum, and personal confidence.
Income
Without regular pay coming in, you’ll need to rely on savings or another form of income. This might mean cutting back on discretionary spending, delaying certain financial goals, or finding creative ways to generate income while away from your main job.
Superannuation
If you’re not earning income, it’s likely that super contributions will also stop. Over time, this could reduce your overall retirement savings. A long break, or several breaks throughout your working life, could have an impact on your super balance at retirement.
Workplace relationships and networks
When you’re away from work, it’s easy to lose contact with colleagues, mentors, or industry peers. That can make it harder to re-enter the workforce later, especially in industries where networking and referrals matter.
Confidence
Many people find that being out of the workforce affects their confidence, especially when it comes time to return. You might worry about falling behind on industry trends, or whether you’re still as skilled and capable as you once were.
Managing the Money Side of Things
Taking a break from work doesn’t have to mean financial stress and with a bit of planning, you can make the most of your time off and still feel in control.
Here are a few areas to think about:
Budgeting & Saving
Try to save up before you finish work. The more of a financial buffer you have, the easier it’ll be
Look at your current spending and see where you could cut back
If you can, build an emergency fund to cover unexpected costs, around three months worth of income is a good starting point
Debt
If you’ve got credit card debt or personal loans, try to pay them down before your break
You might also look into whether consolidating or refinancing could reduce your repayments while you’re not earning as much
Think about what kind of loan repayments you'll be managing while you're off work, some types give you more breathing room than others
Planning Your Return
Even if your break is open-ended, having a rough plan for returning to work can be helpful
Stay in touch with your industry — networking, casual work, or even a short course can help keep your skills fresh
Freelancing or part-time work might be a good way to ease back in and keep some income flowing
Career breaks can be a great way to hit pause and focus on what matters most to you, whether that’s family, health, travel, study, or a new direction. But they do come with some financial curveballs, so it’s worth thinking things through ahead of time.
Everyone’s situation is different, so if you’re not sure how it might impact you, chatting to a financial adviser can help you understand what to watch out for.
How to Plan Ahead for a Smoother Career Break
Not every break is predictable, but when you can plan ahead, things tend to go more smoothly. Here are some steps that can help:
1. Map out your goals
Think about what you want to get from your break. Are you traveling? Studying? Spending time with family? Or just taking a breather? Having a clear purpose can help you stay focused and feel more in control during your time off.
2. Estimate how long you’ll be away
Even if you don’t know the exact timeline, try to get a rough idea. The length of your break will help determine how much money you’ll need, how you manage debt, and how you plan your return to work.
3. Review your expenses
Look through your current spending and identify what can be cut, paused, or replaced with more affordable options. Some costs like commuting or takeaway lunches may drop naturally when you’re not working.
4. Understand your entitlements
Depending on your employer and your employment type, you might be eligible for long service leave, parental leave, or other forms of paid or unpaid leave. It’s worth reviewing your contract or workplace policy early on.
Staying Connected During a Career Break
Even while you’re off work, it can be helpful to stay lightly engaged with your industry. Here’s how:
Networking: Check in occasionally with your old colleagues, attend local events, or keep an eye on LinkedIn updates
Volunteering: If you’re up for it, doing a bit of volunteer work in your field can help you stay connected and give back at the same time
Casual or freelance work: Doing a bit of project work, part-time jobs or freelancing during your break might help you keep skills sharp and earn a bit of income on the side
Professional development: Short courses, webinars, or online workshops can keep your knowledge up-to-date without the commitment of full-time study
These small steps can make the return to work feel less daunting and sometimes open up unexpected opportunities
What About Kids, Partners, or Shared Finances?
If you’re in a relationship, have children, or share money with someone else, a career break might affect more than just your individual finances. Here are a few extra things to consider:
Shared expenses: If your partner is continuing to work, will they be covering all the bills? Do you need to adjust joint accounts or budgets to reflect the change?
Childcare costs: If you’re taking a break to be at home with kids, you might save on childcare. But if you’re studying or looking to work part-time, will you need some care hours?
Centrelink or government benefits: Depending on your circumstances, you might be eligible for family tax benefits or other assistance. Just be mindful of how your break affects eligibility
Talking through expectations with your partner or family before the break can help avoid financial stress later on.
Re-Entering the Workforce After a Break
Getting back into the swing of work can take time, but with a bit of preparation, it doesn’t have to be overwhelming.
Reconnect with your network
Reach out to old colleagues, managers, or mentors. Even a simple message to let them know you’re looking to return can help open doors.
Be confident about your break
Employers are becoming more understanding about career gaps. What matters most is how you frame your time away, focus on what you learned, gained, or how the break helped you refocus.
FAQs About Career Breaks
Can I take a break and still work part-time or study?
Yes, many people structure their break to include part-time work or study. It’s all about what works best for you and your goals during the time off.
Will a career break ruin my career?
Not at all. Plenty of people take breaks and return successfully. In fact, some use the time to switch to more meaningful or flexible work. Employers are often open to career gaps when they’re explained well and balanced with experience.
What if I run out of savings during my break?
It’s a good idea to check in regularly on your budget and spending. If money gets tight, you might consider part-time work or adjusting your break timeline. Having a fallback plan, even a small one, can ease the pressure.
Should I worry about super during a break?
It’s worth being aware of how a pause in contributions can impact your retirement. Some people make voluntary contributions during this time and others focus on this when they return to work. The key is understanding how your time off fits into your bigger picture.
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