Tag Archives: career

How to Financially Prepare for a Career Break (Without Ruining Your Long-Term Goals)

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Taking a career break is becoming increasingly common among expats—whether it’s to care for children, support a partner’s relocation, recharge mentally, study, or travel. But while a pause in your career might sound appealing (or necessary), the financial implications can be significant if you don’t plan ahead.

The good news? You can take time out without derailing your retirement or long-term financial wellbeing. It just requires forethought, structure, and a few key strategies.

Here’s how to financially prepare for a career break the smart way.

Why Career Breaks Are More Common for Expats

In the expat world, career breaks often aren’t “planned”—they happen because of external pressures:

  • A spouse is relocated, and you don’t have a job lined up.
  • You’ve moved countries frequently, and it’s time to reset.
  • Childcare or schooling makes full-time work unsustainable.
  • Burnout hits hard after years in high-pressure roles.

Whatever the reason, stepping back from work can feel liberating—but also unsettling if you’re used to earning, saving, and investing consistently.

The Financial Risks of a Career Break

Without proper planning, a career break can:

  • Disrupt your savings habit.
  • Erode emergency funds.
  • Delay retirement planning or pension contributions.
  • Leave you uninsured or underinsured.
  • Affect your financial identity, especially if you pause for multiple years.

That’s why it’s essential to treat a career break not as a spontaneous exit—but as a financial transition that requires its own plan.

Step 1: Set a Clear Time Frame

Are you stepping away for six months? A year? Indefinitely?

Being honest about the expected duration helps shape every other financial decision:

  • Short-term break (under 1 year): You might lean on cash reserves and pause contributions temporarily.
  • Medium-term break (1–3 years): You’ll want a more structured drawdown strategy and investment plan.
  • Open-ended break: Time to think seriously about sustainability, protection, and long-term income planning.

Even if plans change, having a clear starting assumption helps anchor your budgeting.

Step 2: Build a Dedicated “Career Break Fund”

Just like you’d save for a house deposit or holiday, you should save specifically for your time off.

Your fund should cover:

  • Essential living costs (rent, groceries, utilities)
  • Personal expenses (insurance, transport, phone, etc.)
  • Family or child-related costs
  • Discretionary spending (travel, hobbies, lifestyle)
  • One-off costs (moving expenses, visas, study fees)

Use your current monthly expenses as a baseline, then multiply by the length of your planned break. Add a 10–15% buffer for good measure.

Example

If your monthly costs are S$7,000 and you’re planning a 12-month break:

S$7,000 × 12 = S$84,000

Add buffer: + S$8,400

Total target: S$92,400

Start building this fund before you step away—ideally over 12–24 months, depending on your timeline.

Step 3: Reduce Financial Leakage

One of the best ways to stretch your career break fund is to lower your monthly outgoings.

Before you stop working, review:

  • Subscription services: What can you pause or cancel?
  • Housing costs: Could you renegotiate rent or downsize?
  • Debt repayments: Can you clear high-interest loans before the break?
  • School fees: Do you have flexible payment plans in place?
  • Lifestyle extras: Dining out, gym memberships, shopping habits—can these be pared back temporarily?

Cutting just 10–15% of your monthly spending can extend your time off without touching your investments.

Step 4: Protect Your Future Self

This step is often overlooked—but it matters hugely.

When you’re not earning, you’re also:

  • Not contributing to retirement savings.
  • Not building your investment portfolio.
  • At risk of losing insurance coverage (especially employer-provided).
  • Exposed to health or life shocks without backup.

Here’s what to do:

  • Keep essential insurance in place: Health, life, critical illness and income protection (if available).
  • Continue investing if you can—even small amounts to avoid stopping entirely.
  • Use options like SRS if you have taxable income before the break begins.
  • If you’re planning to re-enter the workforce, stay professionally connected to avoid an uphill climb later.

Your future self will thank you.

Step 5: Plan Your Re-Entry Early

While it might seem premature, it’s wise to think about your return to work before you step away—especially if you’re taking more than a year.

Consider:

  • How long will it take you to find a job again?
  • Will you return to the same industry or pivot?
  • Do you need to upskill or study during your break?
  • Is your professional network still active?

Having a clear re-entry strategy helps you budget more accurately, stay motivated, and avoid letting a short break turn into an unplanned long-term exit.

Bonus: If You’re a Trailing Spouse

Many career breaks among expats happen because one partner is relocated, and the other presses pause.

This can be deeply rewarding—but also emotionally and financially challenging.

Tips for trailing spouses:

  • Open individual bank/investment accounts to maintain autonomy.
  • Keep up with pension contributions if possible (e.g. UK National Insurance voluntary contributions).
  • Stay engaged—freelance, consult, or upskill if time allows.
  • Create your own financial plan, not just one merged with your partner’s.

Independence doesn’t have to mean separate everything—but it does mean knowing where you stand.

What Not to Do

A few common pitfalls to avoid:

  • Don’t assume you’ll “just figure it out” month to month—have a plan.
  • Don’t rely solely on your partner’s income without reviewing your joint financial plan.
  • Don’t liquidate long-term investments unless absolutely necessary—plan withdrawals carefully.
  • Don’t ignore your mental health—financial planning is part of your self-care, too.

Career breaks can be beautiful, powerful, transformative chapters. But they work best when they’re intentional, not reactive.

With a smart savings strategy, the right protection in place, and a clear path back—you can take time off without compromising your financial goals.

Thinking about a career break? Let’s build a financial strategy that supports you now and sets you up for success when you’re ready to return.

One Pass

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For expats that have been Singapore for a while, like myself, I’m sure that you have noticed that there has been a change in how easy it is to obtain employment, passes or visas to work here in Singapore. Particularly, a couple of years ago, the rules around Dependants Passes were changed, meaning that dependants of those on Employment Passes could no longer get a Letter of Consent to work. This was devastating for many, meaning that, as soon as their spouses contract ended, or Employment pass was due for renewal, they too had to quit their jobs, rendering them a stay at home spouse. The only way around this, which I know many have taken up, was to set up their own business and either get themselves an Employment Pass, or a Letter of Consent to work. 

However, this comes with many challenges, such as business costs, and the need to hire a local above a certain salary. I can understand why many chose to leave Singapore during this time, because a dual-income household is obviously going to be better than one in most circumstances. 

But now there is a new pass that allows for flexibility and means that dependants can work, just like Dependants Passes used to be! This is the One Pass, or the Overseas Networks and Expertise Pass. I thought it would be a great opportunity to write about this pass, some of the requirements, and the application process, because most people I know are not even aware about this pass. 

What Is A One Pass?

This pass is very similar to a PEP, or Personalised Employment Pass, with some extra added benefits. You can either apply for yourself, or get your company to apply for you, and has a longer duration than a PEP, of five years. The good thing about the One Pass though, is that it has subsequent renewals, also for five years. Of course, there is certain criteria that needs to be followed, such as a fixed monthly salary of at least $30,000 for the last 12 months or have been offered a job in Singapore by their future employer for at least $30,000 a month. There are special considerations, which I will come onto later, but this is the main route to be eligible for this pass.

Those on a One Pass are not restrained by the Compass and Fair Consideration Framework Advertising requirements, meaning that you don’t have to wait for the job to be posted for a certain amount of time and do not have to fill out the self assessment tool based on your age, experience, et cetera like you do for Employment passes. Flexibility is a massive bonus for this pass, meaning that you can work for multiple companies at any one time, and your pass or visa is not tied down to your employment in Singapore. This also means that if you change jobs, you don’t need to reapply for this pass.

Special Considerations 

 As I previously mentioned, there are ways that you can qualify to outstanding achievements, meaning that you don’t necessarily have to earn a minimum of $30,000 a month. If you have made outstanding achievements in either sports, arts and culture, or academia and research, the salary criteria will be waived. Of course, this is subject to individual review by MOM and other necessary agencies.

What if I Set Up a Company?

Of course, if you want to set up a company, and under the One Pass, you can do so, but many will say that it is very unlikely that you will be receiving $30,000 a month salary from a new business! That’s okay, because the renewal criteria for this pass allows leeway for this. If you’ve started and are running a company in Singapore, you need to employ at least five locals, and they need to be earning at least $5000 a month, your One Pass will be renewed under this criteria instead of the $30,000 a month.

Family

Family members independence were one of the main reasons I decided to write this article because this will allow you to continue to have a dual-income household, without your spouse having to search for their own Employment Pass or S Pass. Your spouse may have a Dependants Pass with a Letter of Consent to work in Singapore under the One Pass. This is great for not only the spouse, but also employers because those on a Letter of Consent do not have to meet S pass or E pass quotas and their salary can be a bit more flexible. It also means that you can get a Long-Term Visit Pass for parents, step children, and even common-law spouses. Of course, if you have children of your own, it’s no issue putting them on a Dependants Pass.

Thing to Take Note 

There are some key differences between this pass and Employment passes, Personalised Employment passes, Entre or Tech passes. For example, Entre, Tech and Employment passes may only be valid for one to 2 years, with Personal Employment passes normally being valid for three years. Of course, the One Pass is mainly targeted at high-income earners, such as executives who have a long track record in that industry, or outstanding individuals in arts and culture, sports, science and technology, or academic research.

Personalised Employment passes require a minimum salary of $22,500; this isn’t too much of a large gap between the One Pass at $30,000, but of course it can be seen as a very large jump if you are on an Employment pass. This path offers many flexibility options that regular Employment passes don’t, meaning that you are not tied to one employer, you can work freelance or work for multiple companies at one time, including starting your own business. This is very similar to a Personalised Employment Pass, but you cannot renew a Personalised Employment Pass.

Why is it Good?

The best thing about the One Pass in my opinion is definitely the Dependants passes for spouses.

In my opinion, this will encourage high-income earners to move to Singapore because they do not have to think about their spouse having to be a stay at home partner if that’s not what they want. I have known many people to leave Singapore because their husband or wife cannot find a job here that will give them an SPass or EPass . This completely takes away that stress and means that those on a one pass can make a smooth transition to Singapore and have a dual income whilst residing here!

I hope you found this useful, by no means am I a recruitment or visa specialist, but I know many people that have gone through this route. If you’re interested in finding out more have any specific questions, feel free to reach out!