Whether it's moving up the career ladder or switching industries entirely, the average American will change jobs 12 times or more in his or her lifetime. 1
There's usually a lot to celebrate with a professional move, but there's also a big to-do list beyond tying up loose ends from your old job and saying your goodbyes.
While you may see an upgrade for your paycheck, you'll need to take a close look at your benefits package, which can prove critical to your financial future. Here are some key questions to ask as you make this latest transition:
Is your new health coverage more or less comprehensive than previously? You'll want to weigh the costs under your company's new plan, including deductibles and coverage for your family, and whether it includes dental, vision and additional benefits.
If you have a spouse with healthcare at their job, do the math to see if it makes more sense to shift everyone to the new plan or to use your spouse's existing one.
Will your new company contribute to your retirement plan? You should determine your contribution, based on whether your new employer provides a matching amount and how much it is. You also likely will have to decide how to handle the money in your previous retirement plan—whether to roll* it over into your new plan or into another investment.
If you have received a salary increase and have the income flexibility, you may want to contact a financial professional to discuss what additional financial products may fit your future needs.
LIFE, DISABILITY INSURANCE.
Does your new job provide life and/or disability insurance, and will it bridge the income gap if you're unable to work? How much will pass to your beneficiaries in the event of your death?
Perhaps you've married or divorced, added children to the household or have emptied the nest. This is a good time to review your needs and re-boot your financial strategy accordingly based on how your family has evolved. We can help.
1 Number of Jobs, Labor Market Experience, and Earnings Growth Among Americans at 50: Results From a Longitudinal Survey, Bureau of Labor Statistics, Aug. 24, 2017. https://www.bls.gov/news.release/pdf/nlsoy.pdf
* Before rolling over the proceeds of your retirement plan to an Individual Retirement Account (IRA) or annuity, consider whether you would benefit from other possible options such as leaving the funds in your existing plan or transferring them into a new employer’s plan. You should consider the specific terms and rules that relate to each option including: the available investment options, applicable fees and expenses, the services offered, the withdrawal options, the potential flexibility around taking IRS required minimum distributions from the option, tax consequences of withdrawals and of removing shares of employer stock from your plan, possible protection from creditors and legal judgments and your unique situation. Neither New York Life Insurance Company nor its agents provide tax or legal advice. Consult your own tax and or legal advisors regarding your particular situation.