Many of us get our first job and then never stop working — out of a need to earn money. However, there are often times when taking a break is either a must or a want — whether to travel the world, pursue an advanced degree or care for family. And as America’s work culture shifts in 2025, more professionals are considering these intentional pauses as essential for wellbeing rather than career-killers.
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Sabbaticals aren’t just personally transformative — they can be professionally advantageous, too. You can return with greater leadership capacity and confidence in your decision-making abilities.
Of course, if you’re considering a career break, you have to face the realities when it comes to your paycheck — or lack thereof. Below is how to financially prepare for a career break in 2025 — and how to protect your future while you’re away.
Also here is how to launch a business during your sabbatical.
The foundation of any successful career break is having enough money saved to cover your time away. Financial advisors typically suggest having six to 12 months of essential expenses before walking away from a steady paycheck.
Start by calculating your monthly expenses during the break — and remember these may look different from your current spending. Then multiply by the number of months, add 20% for unexpected costs and start making automatic transfers to a high-yield savings account.
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If there’s one thing that derails career break plans faster than anything else, it’s healthcare costs. Since most Americans get insurance through employers, leaving a job means finding new coverage during a time when you’ll have reduced income.
According to its website, Cobra coverage lets you keep your current insurance for up to 18 months, but you’ll pay both your portion and your employer’s portion of the premium — often a large increase.
Look into joining a spouse’s insurance plan if possible or purchasing coverage through the Health Insurance Marketplace. Some professional associations offer group health plans worth investigating. And don’t forget to price out the cost of travel medical insurance if your break involves international adventures.
Before your break, try maxing out retirement contributions in your final working months. If you’re married and your spouse is still working, consider a spousal IRA that allows contributions even when you don’t have earned income. And whatever you do, resist the temptation to cash out existing retirement accounts to fund your break — the taxes and penalties will devastate your long-term financial health.
