Changing Jobs Often May Hurt Retirement
Frequently changing employers can make it more difficult to save for retirement, US News reports. The median job tenure of American workers was 5.1 years at the same job in 2008, says a study by the Employee Benefit Research Institute.
Many pension formulas reward long-term and highly paid employees more than workers with a shorter job tenure. Some job hopping workers also move in and out of retirement plan coverage throughout their career and cash out small 401(k) balances when they change jobs, both of which lead to smaller retirement account balances.
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You are right that changing frequently can hurt you. This is especially true if one does not make sure you rollover your 401k into another one or into an IRA. Don’t withdraw the money. You will need it later. Having said that, make sure that you enjoy your job. Working in an area for which you have a passion is the best there is. Don’t stay there just for a paycheck. Start looking to those areas where your passion calls. You will truly get more out of it.
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