One of those changes is your long-term plans and retirement planning, as they are certain factors to consider when changing jobs.
Although you may be changing jobs for a number of reasons, including a better salary, career development, benefits or due to relocation, it will no doubt have implications for your finances.
Preenay Sathu at FNB Wealth and Investments unpacks scenarios that individuals may be faced with when changing jobs.
The company doesn’t offer retirement benefits
If you are leaving a company that offers retirement benefits to move to a company that doesn’t, it is advisable to continue with your current retirement contributions so that you stay on track to reach your retirement goals. “While such decisions could be driven by better career development or better salary, consumers must not neglect their retirement goals.
In this instance, it is advisable to consult a certified financial advisor who will guide you choose the right funds that will meet your needs,” said Sathu.
The company offers retirement benefits
Even if the new company offers retirement benefits, you need to ensure that you make adequate contributions, which will ensure that you retire comfortably.
Avoid putting all your eggs in one basket, by having your own retirement plan, in addition to the one offered by your employer. This will benefit you in the long-term.
Different retirement funds
If you are moving from a company that offers a retirement annuity to a company that offers a provident fund, it would be worthwhile to continue with the retirement annuity in your personal capacity. This will help further strengthen your retirement benefits, which will help you benefit immensely over the long term.
“Retirement saving is a long-term commitment that we should not lose sight of when changing jobs. While it might be difficult for us to immediately see the benefits of retirement savings, the long wait will be worthwhile at the end,” said Sathu.