Navigating career transitions; steering past money roadblocks

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There are so many factors that come into play when considering a career change; better work- life- balance, a search for purpose and meaning, a desire to feel more fulfilled, the list is endless. And then there’s the finance part.

Money has a huge impact on our daily lives, yet for many of us, talking about it and exploring our relationship to it, isn’t normalised. For some it can be an area of discomfort, for others it can be a source of motivation. Whichever way we choose to look at it, finance is a key consideration in our decision making when it comes to our careers and making changes to them; but it is probably the one thing we discuss the least.

So, what is holding people back?

Careers can change partner Richard Alderson, founder of Careershifters, says: “Concerns about money hold many people back from making a career change. From our own supporting survey of 660 UK-based career changers aged 40-65 in October 2024, we found that 71% are worried about the impact of a career change on their financial situation, with only 9% feeling confident enough about their finances to go ahead.” 

When thinking about my own ‘squiggly’ career, I reflect on the significant shift I made from employment to self-employment, and conversations I had with 'myself’ about finance. The need for security whilst stepping into the unknown, was front and centre of my fears around career change. My motivations and desire for something new weren’t curtailed, but they were definitely delayed, as I navigated the prospect of managing on no/low income for a period of time. This kept me in a role I was no longer fulfilled in, for a longer time.

It is recommended that you have 3-6 months’ salary/ living expenses saved to make a career move like this.  For me 12 months felt more comfortable. I was very aware of the risk I was taking in leaving a monthly pay cheque and I craved the peace of mind my ‘buffer budget’ gave me. It allowed me to de-risk part of the process.

For many, being able to save for a career change could be considered a luxury and doing so whilst navigating the current financial climate and rising cost of living is by no means, an easy feat. Financing a career change requires meticulous planning, an openness to change, and a large dose of courage (at least it did for me). It can be challenging, but it is possible with the right help.
 

Financial Sat-nav

Over the past seven months the Standard Life Centre for the Future of Retirement and Careershifters have been collaborating to produce the Financing your career change toolkit, in support of our Careers can change campaign. Drawing on experiences from thousands of career changers, along with guidance from money experts and our campaign partners; we’ve designed a suite of useful resources to help people navigate this tricky terrain. These include:

• A 60 second quiz with top tips and next steps
• Case studies sharing personal stories of how people financed their career changes
• Masterclasses tackling the emotional and practical obstacles 
• Budget calculator, to get into the finer detail on the money you’ll need to make a shift, minimum earnings needed to manage your expenditure and projection of your future finances.  

Financing your career change, is brought to you in partnership with Careershifters and longer lives think tank the Standard Life Centre for the Future of Retirement. Through this special collaboration we aim to equip people with the necessary tools to overcome challenges they may be experiencing in making a career change.

As Richard Alderson, says “Through our partnership we’re tackling these concerns head on – challenging the myths around financing a shift, providing practical guidance and inspiring real-life stories, and aiming to help career changers feel more equipped and more confident about the money aspects of their shifts.”

Access the Financing your career change toolkit