switching careers

Tips for Switching Careers & Still Meeting Retirement Savings Goals

November 25, 2021

November 25, 2021: Have you been asking yourself lately, what happens to my retirement savings if I change jobs? Although career changes are fairly common, understanding the relationship between retirement and changing jobs can help you avoid a sharp break in your retirement savings and help you stay on track with your current retirement plans. Whatever your Retirement Strategy may look like, it’s important to stay consistent and keep reaching your retirement goals even after making major changes in your professional life. If you’re nervous about switching careers while still successfully meeting retirement savings goals, try out these tips to help you along the way.

Find Ways to Increase Earnings in Your New Line of Work

When you switch careers, one potential impediment to your retirement savings account is having to take a pay cut due to your inexperience. Overcoming this potential financial obstacle is key to still hitting your retirement goals. You should:

  • Avoid a large pay cut when taking your first position in your new career
  • Try to move up the ladder as quickly as possible in order to avoid diminishing savings for an extended period of time
  • Gain certifications and expertise in your new field to increase your marketability and salary potential
  • Run the numbers before accepting a new position to see how the offered package could impact your current retirement plans

Revisit Your Retirement Plans and Consider Tweaking the Details

When you make a 180-degree turn in your career, you may need to revise some of the details of your retirement plan. For instance, consider whether shifting careers may require:

  • Pushing back your retirement age
  • Diversifying your retirement investments to help maximize potential returns
  • Committing a larger percentage of your income to retirement savings
  • Trimming down your monthly expenses and adjusting your planned lifestyle in retirement to be able to comfortably make ends meet

Focus on Your Long-Term Goals and Avoid Gaps in Savings

The key to meeting your savings goals after a career shift is to avoid serious financial gaps while focusing on your long-term goals. Make sure you:

  • Keep saving each month, even if it’s less than you were making in your previous career
  • Flesh out long-term retirement goals and plans to help keep you on track and keep you motivated at work
  • Keep your eyes on the prize, and don’t forget to prioritize saving for retirement once you’re comfortably settled into your new line of work

When you’re considering switching careers, it’s important to take the time to revise your Retirement Strategy in detail so you can continue hitting your basic retirement savings goals. Fortunately, it’s possible to keep your retirement savings and plans consistent even after making major career moves. Boosting earnings, tweaking your retirement plans as needed, avoiding savings gaps, and keeping your eye on long-term goals can help.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.

Find out how one policy can make a powerful impact.