If you have not yet heard the term “the great resignation”, you likely will soon. This terminology is being used to reflect the potential tidal wave of people changing their careers, employment and how they make a living. You may even be contemplating a change yourself. In this post we will discuss items to consider if you or someone you know is thinking of making a career change.
The What- In a recent survey 95% of workers are considering changing jobs, according to a report by Monster.com. Since April we have been seeing huge numbers of resignations nationwide and there does not seem to be any slowing to this trend.
The Why- It stems from a variety of reasons including a new desire to work remotely, burnout in current role, life-work balance, lack of opportunity, desire to increase income, and many other reasons. It is also true that many people took time during Covid to reassess their values and priorities and with this new perspective are considering a big change to their career. Whatever the motivation it seems to be widespread and multifaceted.
Things to consider as an employee- When making a job change there are the obvious considerations such as compensation, management, and the roles and responsibilities of the position. However, there are a few other things to ponder. Having a good understanding of the total compensation picture outside of just salary is significant; look at items such as what type of retirement plans and company match, bonuses or employee stock options, which level of healthcare options are covered, does the employer offer an FSA or HSA, and other financial perks such as a company car or cell phone. When you add these types of benefits they can represent a great deal of value outside of just the salary being offered. Non-financial considerations are just as important, factors such as quality of life, proximity, company culture, industry, opportunities for advancement, and others should be taken into consideration.
If you do make a change- Assuming you are one of the 19 out of 20 contemplating a switch, here are a few items to consider post move.
- Retirement plans- If you have an old retirement plan consider your options. It may make sense to consolidate this into an IRA (Individual Retirement Account) or to your new retirement plan (assuming one is available and able to accept rollovers). You may be able to leave the old plan in place, however if you change jobs frequently or have multiple retirement plans you may benefit from consolidation to simplify your tracking. Our advisors are happy to review the pros and cons of each scenario.
- Beneficiaries- This is a good time to review your beneficiary designations on both your existing accounts and those being offered by your new employer. Be sure to update life insurance policies, pension benefits and retirement accounts. This can easily be overlooked and should be reviewed regularly.
- Reach out to your financial advisor- We can assist with a review of your new employee benefits and will make the necessary changes to your retirement and financial plan. Job changes are a great time to review your long-term goals and meet with your financial advisor to be sure your still on track for retirement.
Last Thing- Changing careers is exciting, sometimes overwhelming, and can be life-changing. The Varra Financial Team is here to help you through this process and evaluate your options if you are considering a move.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.