The concept of having one job for your whole life is changing over time. Nowadays, people in the UK are likely to have several different jobs during their working years.
There could be several reasons for switching careers: wanting higher salaries, a better work-life balance, or seeking greater job satisfaction. Yet one of the most significant barriers to making a change is the financial security a stable job provides.
But if you’re ready to take the plunge, changing careers can be an exciting time.
Before you get carried away dreaming about what the future could hold, you may want to consider the impact it may have on your finances, especially if you’re looking at taking a pay cut or relocating. That’s why we’re going to walk you through a few things you might like to think about in terms of your budget.
So far, we’ve concentrated on what might happen if the salary from your new career is lower. It may be higher – happy days.
Whether you have an easy access savings account, an ISA, or some other type of investment product, now might be the time to revisit how much you’re setting aside. The type of savings account you choose (or indeed accounts) comes down to what you want from it – instant access, tax efficiency etc.
The most important thing to remember is that saving regularly gives you:
If you change jobs, your workplace pension still belongs to you. Even if you do not continue contributing into the scheme, the money will remain invested and you’ll get a pension when you reach the scheme’s pension age.
You may also join another workplace pension scheme at your new employer.
There’s also a possibility that you may be able to combine the old and new pension schemes.
If you’re unsure of your options, you might want to speak to a pensions advisor who can point you in the right direction.
Changing careers is an exciting time. You’re going to meet new people, have new experiences, and learn new skills. But before you get carried away, it might also be time to think about your finances.
Before you take the plunge, there’s a lot to think about:
If you’re feeling overwhelmed, don’t forget you don’t have to go it alone. A financial advisor can help by answering your questions.