A career change is a serious option for many people in the current economic climate. Fluctuating life circumstances, unexpected redundancies or technology changes can lead to the necessity of a career change. But have you thought enough about how this career change will affect your retirement plans?
A midlife career change can have a huge effect on retirement planning. With almost half of the UK workforce thinking about a change in career, itís definitely something to think about. However, the effect on financial security and a fear of failure frequently holds people back from changing careers.
A report released by the London School of Business and Finance in 2015 showed that 47% of professionals would like to change career, with 21% hoping to make a career change within the next year. Salary, a better work-life balance and improved career satisfaction are the main reasons stated in the report as to why people hoped to make a career change.
Many people looking for a career change are classified as Ďmidlifeí. As types of career change and people live longer, it is realistic to go through at least one career change in your working life. However, you must think hard about the financial implications and plan ahead however your career progresses.
Having a career strategy is key. Map out a projection to see what your income will be if you do change career. You might make a loss in the short term, but if a career change will eventually mean a higher salary, or a better work life balance for you with money you can comfortably live on, itís worth making that change of career. You can always plan ahead too, making sure you have some savings or money set aside to cope with any short term changes or problems your career change may create.
Donít forget to keep putting money aside for retirement too. Ensure that you are still contributing to a pension and try to keep you and your family financially secure.
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