How to take a career break and keep your pension on track

If you’re planning to take a career break, being proactive could help you keep your pension and long-term plans on track. 

Many people taking a career break will consider the effect on their short-term finances, such as how they’ll pay essential bills and if they’ll need to dip into savings. However, they may not consider the potential long-term implications of pausing pension contributions. 

A two-year career break could mean your pension is thousands of pounds less

According to figures published in the i Paper (4 March 2026), a 27-year-old with a £9,000 pension pot contributing £200 a month who takes a two-year break at age 30 would see their projected retirement pot shrink from £199,130 to £188,727 – a difference of more than £10,400. 

One of the most common reasons to take a career break is for maternity leave. Indeed, Scottish Widows states that the biggest driver of the gender pension gap remaining “stubbornly wide” is career breaks. Around half of women have taken a career break at some point, compared to 1 in 5 men. 

Of course, there are other reasons to take a career break. You might have caring responsibilities for elderly relatives, further your education, or simply take a break.

Whatever your reasons for taking a career break, there might be some steps you could take to keep your retirement on track. 

5 practical tips that could support your long-term finances during a career break 

1. Assess the potential impact 

Don’t bury your head in the sand when you’re taking a career break. Instead, work out what you expect the financial impact to be before you stop working.

It might feel like a daunting task, but knowing where you stand could help you feel more in control. Armed with this information, you can create a plan to mitigate the implications of a career break and boost your confidence about the future. You might even find that you’re in a better position than you expect, and your pension will remain on track without any adjustments. 

2. Consider your National Insurance record

For many people, the State Pension plays an important role in their retirement finances, as it provides a reliable income.

The amount you’re entitled to when you reach State Pension Age is linked to your National Insurance (NI) record. Usually, you’ll need 35 qualifying years on your record to receive the full State Pension. If you take a career break, you could be left with a gap.

In some cases, you may be able to claim NI credits to fill these gaps. For example, if you receive Child Benefit for a child under 12 or are a carer for a disabled person, you might receive NI credits. 

Depending on your circumstances and plans, a career break might not harm your State Pension entitlement either. If you started working full-time at 20 and plan to retire at 65, you’d have 45 years on your NI record. So, even if you took a break for a few years, you’d still have the required 35 years to receive the full amount.

You can check your NI record online to understand if a career break might affect your State Pension income. 

3. Continue to make pension contributions during a career break

Taking a career break doesn’t mean you have to stop pension contributions. If you’re in a financial position to do so, you could make one-off or regular contributions into your pension, which would benefit from tax relief.

One thing to note is that the limit for receiving tax relief on your pension contributions as a non-taxpayer in 2026/27 is £2,880. If you deposit the full amount, it will attract tax relief of £720. 

However, it is possible to carry forward unused pension Annual Allowance from the previous three tax years if you’ve exhausted this year’s allowance, which might allow you to make higher contributions tax-efficiently.

4. Make pension contributions from your partner’s salary 

If you’re taking a career break while your partner continues to work, for example, as the primary caregiver to young children, they could make contributions to your pension alongside their own.

This option could ensure both you and your partner’s pensions continue to grow to keep your shared retirement on track. 

5. Make higher pension contributions when you return to work

Being aware of a potential pension gap before you take a career break could allow you to create a long-term plan. To make up for a shortfall, you might be able to increase your pension contributions when you return to work.

We could help you assess the impact of a career break

Whether you’ve taken a career break or are planning one in the future, we could work with you to understand how it might affect your pension. By being proactive, you could keep your retirement plans on track and feel confident about your finances. 

Please note:

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.