Latest News
The Connection Between Job Changes and Retirement Risk - napa-net.org
Changing employment is relatively common these days, with the Bureau of Labor Statistics reporting that most people have held a dozen or more jobs during their time in the workforce. Gone are the days of a lifetime of employment at the same company and a “golden watch” exit directly into retirement. For the job-changer, that’s often a good thing, since it creates opportunities for upward mobility as more attractive positions become available.
But what about the defined contribution plans you’re accumulating as you change jobs? This can be a source of lost momentum toward wealth accumulation for retirement, according to a Napa-net.org post by Nevin Adams on their website. Adams suggests, “Changing jobs can be a time of great energy and excitement — but if you’re not attentive, it can also undermine your retirement security. Here are five ways it can do so,” and he’s referring to the decisions needed when exiting a particular job, since 401(k) plans allow several options that can be detrimental to long-term (retirement) savings if not handled correctly.
They may be small in the overall retirement planning scheme, but consider them in terms of compounding and the time value of money. In his article, Adams provides five separate ways in which incorrect decisions at exit time can hurt your savings plans. Check it out here…
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.