Middle-aged Americans are leaving work for months, years to see the world — but are they putting their retirements at risk? How to take a ‘golden gap year’ without killing your finances

A golden gap year has some serious downsides for retirement security

There's no sugarcoating it. Taking a pause from your career in your 50s can have serious consequences for your retirement.

For one thing, you probably won't be socking away a ton of cash in your 401(k) when you're sipping drinks on the Riviera. Remember Americans age 50 or over are allowed to make extra tax-deductible catch-up contributions to retirement plans. If you're earning a good salary and an employer 401(k) match, you'll give up that free money each year traveling stops you from maxing out your match.

Your Social Security benefits may suffer while you're off hitting golf balls too. Your benefit is based on your average salary over your 35 highest earning years. Since salaries usually go up over time, taking an extended work break when your earning potential is at its peak will reduce the monthly and lifetime benefits you receive.

Of course, you also have to consider your career prospects and your health insurance needs too. Will you have a job to come back to? Will your employer keep covering your premiums when you're out of office? Buying individual coverage in your 50s can be quite expensive if your employer isn't subsidizing you.

This all means that taking a golden gap year before officially retiring could put your real retirement at risk — even if you aren't tapping your retirement nest egg to fund your trip.

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There are smart ways to get away

Although there are definite downsides to pressing the pause button on your career, there's a reason so many seniors are embracing the golden gap year trend. Not everyone gets a long and healthy retirement, so there's something to be said for traveling when you can.

Retirement also looks different today, with some older Americans planning to keep working in at least some capacity even well into their later years for non-financial reasons. If you aren't setting a date when you're officially done, there may be no reason not to start your non-traditional work/retirement life early.

The key is to carefully consider the big financial picture before booking plane tickets. If you have a big enough nest egg, can afford your gap year without having to tap it, can definitely come back to your job, and have a plan for health insurance, you can rest easy knowing your trip won't ruin your long-term retirement plans.

Better yet, see if you can find ways to have adventures without giving up a paycheck. See if your employer will allow you to work remotely part-time, for example, or look for work you can do from anywhere, even a hotel room abroad.

The COVID-19 pandemic opened up the door to many unconventional work arrangements, so you may find more options than ever before to work while seeing the world. It's worth looking into, so a modified golden gap year can satisfy your desire to see the world without affecting your Social Security benefits or the size of your savings.