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Many Canadians have recently realized it’s time for a change, leading to a reassessment of their values in pursuit of more fulfilling lives.

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Whether this trend is a byproduct of the world slowing down during the COVID-19 pandemic or a shift away from traditional North American work culture, which emphasizes the belief that one must tirelessly work until retirement, a focus on personal fulfillment is here to stay.

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For many, mid-career gaps have become a viable solution, whether it involves taking time off to travel, pursuing a passion, going back to school or making a career change to fight burnout. However, a common worry remains: Does taking a mid-career gap jeopardize long-term financial health?

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The good news is that it doesn’t have to; with proper planning, these breaks are not only feasible, but can lead to a more value-focused life without compromising future financial security.

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Showing your cards

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No matter your dreams, conducting a values assessment is essential in finding the right path toward personal fulfillment. These assessments can be done independently with online software or with the guidance of a wealth adviser and can help you reprioritize your actions around your core values.

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Methods such as the “deck of cards” approach — where values such as religion, family and philanthropy are assigned onto cards and narrowed down from 50 options to your top five priority focuses — can be helpful exercises in identifying what truly matters most to you.

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Narrowing down top priorities can be challenging, especially for couples as they navigate differing priorities while needing to compromise on financial decisions. By effectively using these tools, couples can better understand their priorities, make more agreeable compromises and align their financial plans accordingly.

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Mind the gap

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Once you’ve identified your top priorities, it’s time to consider any implications associated with taking an extended leave so that intentional preparations can be made.

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Whether it’s leveraging online financial planning resources or seeking guidance from an adviser, proper planning can set you at ease, allowing you to enjoy your time off while ensuring your long-term financial goals remain on track.

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The planning process should involve assessing your current finances, identifying short- and long-term financial goals, and projecting expected costs during the career gap. To create a comprehensive plan, variables such as current savings, the rate of return on investments, inflation, interest rates, retirement goals and other considerations should all be included.

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Conducting different what-if scenarios by adjusting variables can also be a valuable way of stress testing the plan. Generally, it’s best to take a conservative approach to prepare for contingencies. After all, having less than expected could create unwanted stress and counteract the benefits of taking an extended break in the first place.