Employers invest considerable time and resources in helping their staff plan for retirement. From pension contributions to educational seminars explaining how pensions work, it’s a core part of an employer's toolkit.
But as sabbatical coach, Lyndall Farley (who has 12 sabbaticals under her belt) reminded me in our recent conversation on the Money:Mindshift podcast, that’s only half the job done.
The psychological side of retirement
It’s easy to think of retirement as a purely financial event (save enough, invest wisely, and you’re set). But as Lyndall put it on the podcast, the reality is far richer and more complex.
‘We know now that there is no such thing as study, work, retire. The job for life is gone,’ she said.
And I believe she’s right – that our relationship with work has changed. Modern working lives no longer seem to follow the neat ‘study, work, retire’ model. People now often have multiple careers and transitions, with some wanting to try completely different fields.
If employers wanted to support their staff’s long-term financial wellbeing, it could be worth them acknowledging the mental and emotional adjustments that come with stepping away from work. Even if only temporarily.
Sabbaticals could give employees a chance to ‘step back and get perspective,’ as Lyndall explained. ‘The simplest way that I can define the word sabbatical for people is that it is an extended break from work. And the purpose of that is to recharge and pursue other interests,’ she said.
They provide ‘an intentional break for rest and recharge and pursuing other interests,’ she told me. This could help staff prepare, not only for retirement, but also for the transitions and reinventions that are seemingly becoming the norm in modern careers.
Why employers should offer sabbaticals
Lyndall was clear about the value of sabbaticals in companies: ‘It’s really just like taking advantage or using the opportunities that the shift in the workforce has presented to us'. She pointed out that, particularly at middle and senior management levels, employees can often negotiate a break between roles. Or even during employment if employers are open to it.
Offering sabbaticals could send a powerful message – that the employer cares about the whole person, not just their output. If we think about the long-term health and happiness of our people, then sabbaticals could be a critical investment.
Lyndall helped me understand that sabbaticals could help employees:
- Recharge and return more engaged
- Develop new skills or explore passions that can later enrich their roles
- Manage transitions, such as mid-life shifts or family needs, that might otherwise lead to burnout or resignation
This isn’t just about altruism. It’s about retaining talent. Lyndall pointed out that ‘so many opportunities now exist because of the shifting nature of employment.’
Employers who embrace sabbaticals could attract and keep top talent by aligning their benefits with how people want to work and live. You might want to check out our article on why health and wellbeing should be on every manager's agenda.
The Money:Mindshift podcast
Tune into our podcast where author, financial wellbeing pro and host, Dr. Tom, chats with experts about shifting your financial perspective.
The money mindshift for employers
Supporting sabbaticals is, in essence, a money mindshift for employers, too. It means recognising that financial benefits alone likely won’t keep employees healthy, engaged, and ready for retirement.
Lyndall urged employers to think creatively, too: ‘It doesn’t have to be this really expensive thing.’ She suggested it could be three months, six months, paid or unpaid – whatever makes sense for the business, and individual.
Importantly, employers could structure sabbaticals to suit their budgets and operational needs by:
- Offering unpaid or partially paid options
- Integrating sabbaticals into career transitions, such as between roles
- Encouraging staff to plan well in advance so that teams can manage workloads effectively
A practical starting point for offering sabbaticals
Employers could start by embedding sabbaticals into their benefits framework. Just like pensions and health plans. Lyndall’s advice to individuals applies here, too: ‘Always start with why.’
As employers, you could ask yourself: why is this important to our people? What are we hoping to achieve, for both our colleagues and for the business?
By doing so, employers may not only support staff in living bigger, more balanced lives but could also lay the psychological groundwork for successful retirements.
Because true retirement planning isn’t just about money. It’s about making sure people have the mindset, confidence, and experiences to step into that next chapter with purpose and joy.
And that, I’d say, is the ultimate money mindshift.