April 13, 2025 - 12:00
Leaving a job, whether by choice or due to layoffs, can significantly impact your retirement savings. It's crucial to remain proactive during this transition to ensure your financial future remains secure.
When you change jobs, the first step is to assess your current retirement accounts. If you have a 401(k) with your previous employer, consider whether to roll it over into your new employer's plan or into an Individual Retirement Account (IRA). This decision can affect your investment options and fees, so it’s important to weigh the pros and cons carefully.
Additionally, if you're starting a new position, take advantage of any employer-sponsored retirement plans as soon as possible. Contributing to these plans, especially if they offer matching contributions, can significantly boost your savings.
Lastly, maintain a budget during your transition period. This can help you avoid dipping into your retirement savings, allowing you to stay on track for your long-term financial goals. By taking these steps, you can navigate job changes without compromising your retirement plans.
