Taking a career break
Capital to Replace Income
When planning a career break you will sensibly ensure that you have sufficient savings to tide you over. Depending on how far ahead you plan an ISA is an excellent vehicle. If you are within a few years of taking a break a cash ISA may be the best option. If you have more time then a general ISA could produce better returns. A combination of both is ideal.
Income from ISAs is tax free and you pay no capital gains tax on encashment.
Renting out your property
If your career break involves travelling you may consider renting out your property. Here are a few things to consider :
Pension funding break
You may be fortunate enough to be able to afford to continue funding a pension whilst you take a career break but thats very unusual. Most career breaks mean a dramatic reduction in income.
For the majority of us - particularly women still - it is crutial that additional or earlier pension funding is done. Once you take a break, particularly if its to bring up a child, your pension fund may never recover.
Certainly once you have children other priorities take over for the next 15 to 20 years!
Even if your break is only a year or two the impact will remain with you throughout your retirement years.
