One of the tactics that is becoming both more attractive and common is what I’ll call the “Pre-Retirement Gap Year.”  Personally, when I consider gap years, I envision my kid telling me they want to go to Europe and “find themselves” either during or after college.  It’s at this point I remind them that I started my career exactly 7 days after college graduation and they should just take a look in the mirror if they feel lost. Harsh – but I frame it in a much more pleasant speech!

 

Taking a gap year later in life can have mixed effects on a career, depending on factors like industry, role, skills, and the person’s plans upon returning. If a gap year is on your bucket list let’s examine a few of the potential challenges and opportunities.

 

  1. Potential Income and Career Growth
  • Income Dip: Professionals who take a mid- to late-career break often sees an initial income reduction upon returning, estimated around 10-20% lower than expected earnings if they hadn’t taken a break.
  • Slowed Advancement: In competitive or fast-evolving industries, missing a year can sometimes slow down career growth, especially if technical skills or network connections require regular updating.
  1. Re-entry Challenges
  • Age Bias: Age-related biases can make re-entry harder for professionals in this age group, particularly in industries like tech, finance, or consulting, where younger employees are often favored for their perceived adaptability. Bunch of young chumps squeezing us out!
  • Skill Relevance: Skills can become outdated relatively quickly in some fields, meaning a gap year might necessitate upskilling or retraining to stay competitive. Once again this is very specific to one’s industry and skill set.

 

  1. Positive Impacts
  • Mental Health and Productivity: Studies show that career breaks taken at any age can improve mental health, lower burnout rates, and increase job satisfaction and productivity upon return. In my experience many late-stage executives face tremendous stress at work.  This can have a big impact on health and vibrancy during their eventual retirement.  Finding either a gap period or “downshift” at work might be very much in their interest.
  • Career Pivot: For some, a break is an opportunity to upskill, gain certifications, or even switch career paths, which can ultimately lead to long-term career benefits if well-planned. Taking your skills to an entrepreneurial journey via consulting or part time experiences can both be fun and challenging.

 

  1. Context and Strategy
  • Planning for Re-entry: For those planning a gap year, a strong re-entry strategy—such as staying connected with industry groups, networking, and maintaining certifications—can mitigate many potential setbacks.
  • Industry Variability: The impact can be lessened in industries where age and experience are highly valued, such as executive roles, consulting, or some creative fields, where a gap can even be seen as a benefit.

 

Just like successful retirement planning, a gap year strategy requires some foresight and solid financial planning (PrairieFire can help!)

 

Strategies for a Productive Gap Year

  • Skill Maintenance: Regularly participate in online courses, webinars, or conferences related to your field to stay current.
  • Side Projects or Consulting: Consider taking on part-time consulting, freelancing, or side projects that are manageable during your gap. This keeps you active professionally and demonstrates continued engagement.
  • Network Engagement: Stay active in professional networks (both online and in person). This can include attending industry events, joining professional groups, and contributing to online communities.
  • Documentation and Reflection: Document any professional skills or insights gained during the break, even if unrelated to your primary industry. This can show potential employers or clients your dedication to growth and adaptability.

 

In the end, based on health, career trajectory or the desire for an exciting personal development journey might mean a gap year or gap period would be a great solution.  If you’re interested in exploring these options, please reach out and we can work on a plan.