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ADULT GAP YEAR SERIES: Quit Work for a Year Without Quitting (The Deferred Salary Plan)

  • johnathon25
  • May 31
  • 2 min read

Michelle spoke with John Cuddie, a retired HR professional with deep experience in school boards, about deferred salary leave plans — a structured way to save for a year off work. John shared how he used the program twice, what he did during his leaves, and why intentional pauses can be personally and professionally valuable.

About John

  • Spent 30+ years in HR with three school boards

  • Later worked as an employment advisor helping new immigrants and youth

  • Approves deferred salary leave plans as part of his HR background

  • Took two deferred salary leaves himself

What Is a Deferred Salary Leave?

  • A leave of absence funded by saving part of your salary in advance

  • Common structure: “four over five”

    • Work 4 years at 80% pay

    • 20% goes into a trust account

    • Take the 5th year off using those savings

  • Often includes pension/benefit considerations and a contractual return-to-work agreement

What John Did on His Leaves

First Leave

  • Home projects: painting, purging, tidying

  • Family travel to India and Dubai

  • Trips with kids to Broadway/New York and a ski holiday

Second Leave

  • More household and personal tasks

  • Significant time supporting a close friend going through cancer treatment

  • Some travel as well

Main Takeaways

  • A year off can be invigorating

  • It can also be humbling — work continues without you

  • Time away helps people see they are not their job

  • It creates balance and makes room for other forms of contribution

What Holds People Back

  • Financial concerns about living on reduced salary

  • Uncertainty about what the future may hold over a 4–5 year planning period

  • Family changes, life changes, and possible cancellation of plans

Planning Considerations

  • Budget carefully

  • Think through staffing and who will cover your role

  • Consider family and partner dynamics

  • Balance practical tasks with rest, fun, travel, and connection

  • Use the time to invest in what matters most

Practical Advice/Next Steps for you

  • Start by talking to your employer or boss

  • Ask your payroll department about the details

  • Review CRA guidance on tax implications

  • Be ready to discuss staffing and return-to-work planning


  • Connect With The Canadian Gap Year Association





 
 
 

4 Comments

do kimdung
do kimdung
2 days ago

Slope Rider This deferred salary plan concept is such a smart way to take a real break without derailing your career.

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Nu Chuppy
Nu Chuppy
Jul 24

This concept of utilizing a deferred salary plan for a gap year is fascinating! I took a similar route years ago; henry stickmin it allowed me to travel and grow without sacrificing financial stability. It’s life-changing!

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candy Emily
candy Emily
Jul 21

The material presented on this website has genuinely captivated me. It illustrates your level of understanding regarding this subject Level devil.

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Ford
Jun 16

This deferred salary plan concept is such a smart way to take a real break without derailing your career. The "four over five" structure gives you time to travel, do home projects, or even support loved ones through tough times. If you're considering something like this, it's worth thinking about how you'll manage your finances during the reduced-pay years. I've been using Intuit https://intuit.pissedconsumer.com/review.html to track my spending and see exactly where my money goes, which makes planning for a gap year feel a lot less scary. Having clear financial goals and visibility into your cash flow can turn an intimidating idea into an achievable plan.

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