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.