How to Join the Great Resignation Without Sabotaging Your Retirement – Whether you call it a job crunch, labour shortage or The Great Resignation, you can’t ignore the trend during the pandemic: People around the world are quitting their jobs en masse.
In America, Recent numbers from the Bureau of Labor Statistics indicate that 4.3 million Americans resigned in August, likely inspired by their padded savings accounts and lingering health worries amid the pandemic. There are 10.4 million job openings in the United States, meaning workers finally have the upper hand in the job market.
“People are reprioritizing what’s important to them and the social contract they have with their employer,” says Sri Reddy, senior vice president in retirement and income solutions at Fidelity.
It’s easy to get caught up in the fervor, but experts say not to forget that what you do now could impact your finances in the long run.
Before you slam that strongly worded resignation letter down on your jerk of a boss’ desk, it’s crucial to consider the potential consequences for your retirement — even if that’s still decades away.
Here’s what to do.
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Prepare to make the leap
You should know where you’re going next before you quit your current gig. If you’re changing companies, line up a new role. If you’re starting your own business, have the funding, location and paperwork nailed down.
Review your finances to make sure you can financially support your next move – That includes continuing to save toward long-term goals like retirement during the transition. Any interruption in your retirement savings now could result in big losses later.
Ideally, you want to have an emergency fund stashed away with three to six months’ worth of essential expenses. (FYI: If The Great Resignation has you going freelance, you may want a year’s worth.) That way, if something disastrous happens, you won’t have to tap into money you’ve earmarked for retirement.
Read the fine print
You probably enjoy several benefits in your current position — Alas, they may come with a catch, for example if you’ve been neglecting your personal hospital medical insurance which is usually also provided by the Company’s general health insurance plan, annual health check ups (see Next Life Book’s NLB Benefits for a great deal at only $70 / year!) – but do talk to your current financial advisors, or let us link you to great ones at Summit Planners here.
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You can read more about How to Join the Great Resignation Without Sabotaging Your Retirement, and the US context, over at https://madison.com/business/investment/personal-finance/how-to-join-the-great-resignation-without-sabotaging-your-retirement/article_fc686cac-c7cf-576a-be4c-d68f17f10030.html
