Planning a golden gap year? Here's what to check before you go

For years, the phrase ‘gap year’ brought to mind backpacks, hostels and young people setting off to ‘find themselves’ before starting work. Today, a different generation is embracing the same idea, but for different reasons.

More people in their 50s, 60s and beyond are taking what's become known as a ‘golden gap year’. It's an extended break later in life that could be used to rest, travel, volunteer or learn something new.

For some, the break is prompted by redundancy or burnout. For others, it's the moment children leave home, caring responsibilities ease, or retirement finally comes into view. And sometimes, it's simply a feeling that life is too short to keep putting dreams on hold.

A golden gap year doesn't have to mean luxury cruises or round-the-world adventures. It could also mean volunteering in your local community, taking an art course, learning a new language, or spending unhurried time with grandchildren.

It's often less about escaping life and more about asking what the next chapter could look like. But it pays to take a little time first, to make sure your finances can support the journey.

Why golden gap years are having a moment

The Covid-19 pandemic changed how many of us think about time. Instead of waiting for a traditional retirement date, some people are now asking whether they could enjoy a slice of that freedom a little sooner. 

After decades spent balancing careers, housing costs and family life, taking time for yourself can start to feel less like an indulgence, and more like restoring some balance.

It's part of a broader shift in how people think about retirement. Barnett Waddingham's At Retirement Reckoning report found that travel is now the most-cited retirement ambition, chosen by 36% of UK adults, ahead of spending more time with family (32%).

At the same time, UK government research found that 55% of people aged 40 to 75 would consider a Midlife MOT to reassess their work, finances and wellbeing.

Planning for a midlife gap year

Taking a year out at 22 years old or later at 58 are very different decisions. At 22, the biggest worry might be delaying your first job. In midlife, stepping away from work can affect your income, your pension contributions, your National Insurance (NI) record and your retirement plans.

Your State Pension is based on your NI record. Most people need 35 ‘qualifying’ years to receive the full new State Pension, though the exact number depends on your own circumstances. A qualifying year is any tax year (6 April - 5 April) where you’re:

• employed and earning over £242 a week (2026/27) from one employer and paying NI contributions;
• employed and earning between £129 and £242 a week (2026/27) from one employer and are treated as having paid NI contributions;
• self-employed and paying Class 2 NI contributions;
• making voluntary NI contributions; or
• receiving NI credits.

If you stop working for a while, you could miss a qualifying year. Some people keep building their record through NI credits, others don't. The good news is that a gap isn't necessarily permanent.

You can usually pay voluntary contributions to fill gaps from the past six tax years. But it’s worth knowing that the price has gone up. Class 3 contributions rose to £18.40 a week from April 2026, meaning a full missing year now costs £956.80 (2026/27).

The best starting point is checking your State Pension forecast and NI record, so you know where you stand before deciding anything.

{{main-cta}}

What happens to your pension while you're away?

Taking time away from work doesn't mean your pension stops. But it could affect how much is paid in while you're away, depending on your employment status and the type of leave you're taking.

Your workplace pension may pause

If you're employed, you may be paying into a workplace pension through Auto-Enrolment. Auto-Enrolment is a UK law that means most eligible full-time and part-time employees are automatically enrolled into a workplace pension. Both you and your employer usually make contributions, so if your pay stops, those contributions could pause too.

If you're planning unpaid leave or a sabbatical, ask your employer what will happen to your pension while you're away. Some employers continue making contributions during certain types of leave, while others don't.

Missing contributions for a short period isn't necessarily a problem. But it's worth understanding the impact beforehand, so there are no surprises and you can plan with confidence.

Self-employed contributions

If you're self-employed or freelancing, there's no employer paying into your pension for you. So a pause in contributions can leave a bigger gap than it might for someone in employment.

And when work goes quiet, pension contributions are often one of the first things to pause.
It helps to know that even if you earn less than £3,600 annually or don't earn anything, the maximum amount you can contribute to your pension whilst receiving tax relief is £2,880 net. This brings your total annual contribution to £3,600 gross once tax relief is added (2026/27).

Keeping up smaller contributions during a career break can help your retirement savings carry on growing, even while everything else is on pause.

Using your pension to fund the time off

If you're over 55, it might be tempting to dip into your pension to pay for a golden gap year. But the rules can be more complicated.

Most modern workplace and personal pensions are defined contribution pensions. You can usually start taking a flexible income from this type of pension from age 55 (rising to 57 from 2028). But once you begin flexibly drawing your pension, you trigger the money purchase annual allowance (MPAA).

This limits how much tax relief you can receive on contributions you make afterwards, cutting your allowance from £60,000 down to £10,000 a year (2026/27). The MPAA only applies to defined contribution pensions and doesn't affect defined benefit pensions.

If you're planning to return to work and rebuild your pension afterwards, understand this rule before you touch your savings. And if you're considering using your pension to fund a long break, regulated financial advice can help you see the full picture.

A full year isn't the only option

If a full year break feels too big a leap, financially or otherwise, there are smaller ways to get some of the same freedom.

You might try:

• several longer holidays spread across a year;
• a career sabbatical;
• volunteering closer to home;
• studying something you've always wanted to learn;
• gradually reducing your working hours before retirement; or
• combining part-time work with travel.

A shorter break can still give you that sense of space and possibility, just with less pressure on your finances and your career.

Your pre-departure checklist

Before you start packing, it’s important to take stock of your finances.

Check your retirement plans by:

• reviewing your State Pension forecast 
• checking your NI record for any missing years;
• finding out whether filling any gaps would increase your entitlement;
• reviewing your workplace and personal pensions;
• estimating any pension contributions you'll miss while away;
• considering whether you can keep contributing during your break; and
• avoiding accessing pension savings (from age 55, rising to 57 from 2028) without understanding the tax implications first.

Review your work and income by:

• working out exactly when your income will stop;
• speaking to your employer about sabbaticals or flexible working, if that's an option;
• confirming what happens to your workplace pension while you're away;
• creating a realistic budget for the break; and
• thinking about how you'll ease back into work afterwards. 

Don't forget the practical details such as:

• arranging suitable travel insurance;
• checking your home insurance if your property will sit empty;
• reviewing any mortgage or rental commitments;
• keeping an emergency fund separate from your travel budget; and
• updating your financial providers if your contact details change while you're away. 

Summary

A golden gap year can be joyful, restorative and more achievable than you might think. Whatever you dream of doing, taking time out doesn't have to come at the cost of your future.

Planning ahead makes all the difference. Check your State Pension forecast, understand your NI record and review your pension savings so you can move forward with confidence.

And if you've built up pensions with different employers over the years, bringing them together into one place could make it easier to see exactly where you stand before you take your next big step.

A golden gap year doesn't have to come at the expense of your retirement. With a bit of planning, it's possible to enjoy time away today while keeping your long-term finances on track. 

Risk warning

Please note that tax rules change regularly, and the actual tax benefits you receive will depend on your individual circumstances. If you’re not sure, please seek professional advice.

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.