"Challenges such as these must be front and centre in the ongoing pensions review to ensure that retirement adequacy is equal for everyone."
- Paul Leandro, Partner at Barnett Waddingham
Of those surveyed (2,002), roughly a third have taken or are planning to take extended leave, whether that’s a shorter-term sabbatical (30%) or a longer career break (33%). Barnett Waddingham believes this marks a “significant departure from the traditional view of uninterrupted employment.”
Interestingly, 18-24-year-olds (Gen Z) were the most inclined to take a career break, with over a third (34%) planning a sabbatical and 29% looking to take an extended career break. This cohort is the most future-oriented when it comes to sabbaticals.
Amongst those aged 25-34 (Millennials), 16% have already taken a sabbatical, and a quarter (26%) are planning to do so. Meanwhile, over a fifth (22%) have already taken an extended career break, and 23% intend to.
However, enthusiasm for extended leave declines as staff get older. Just 13% of 45-54-year-old (Gen X) employees are planning to take a sabbatical, and 9% an extended career break.
As sabbaticals become more mainstream, Barnett Waddingham has stressed the importance of businesses adapting their policies to support staff.
“We’re witnessing a shift in how employees approach their careers, with many taking breaks earlier to support their mental health, personal growth, or long-term productivity. But this choice comes with hidden [financial] risks,” explained Paul Leandro, partner at Barnett Waddingham.
He said: “The traditional career path has evolved, but this can’t come at the cost of people’s retirements. Businesses embracing this shift will attract and retain talent, but should also play an active role in preventing financial fallout.
“Challenges such as these must be front and centre in the ongoing pensions review to ensure that retirement adequacy is equal for everyone,” Paul concluded.
