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WSJ Your Money Briefing

How Switching Jobs Could Set Your Retirement Savings Back by $300,000

WSJ Your Money Briefing

The Wall Street Journal

News, Business News

4.11.7K Ratings

🗓️ 8 October 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

While the median job switcher gets a 10% raise each time they move to a new company, their potential retirement savings can fall short because they forget to re-adjust contribution levels. Wall Street Journal reporter Anne Tergesen joins host J.R. Whalen to discuss how much financial advisers recommend workers should plan to save in their retirement accounts over their career. Sign up for the WSJ's free Markets A.M. newsletter.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Exchanges. The Goldman Sachs Podcast featuring exchanges on the forces driving the markets and the economy.

0:07.5

Exchanges between the leading minds at Goldman Sachs.

0:11.0

New episodes every week.

0:13.4

Listen now.

0:14.4

Here's your money briefing for Tuesday, October 8th.

0:20.7

I'm J. R. Whelan for the Wall Street Journal.

0:26.2

Imagine putting money away in your 401k for decades, and when it's time to retire,

0:31.4

your savings come up short by $300,000.

0:35.0

That's how much money someone working a 40-year career could potentially leave on the

0:39.6

table if they don't adjust their contribution levels each time they get a new job.

0:44.0

The median job switcher gets a significant raise, like a 10% raise when they move from one company to another,

0:51.0

but their 401k savings rate goes down by almost a percentage point.

0:56.2

There's that sort of mismatch of here you are progressing through your career, you're getting

1:00.0

a nice big raise, but you're allowing your 401k saving rate to slip down which isn't

1:05.6

ideal.

1:06.6

Wall Street Journal Retirement reporter Ann Turgison will join us after the break.

1:19.0

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1:34.0

For products purchased from any e-commerce sales channel.

1:38.0

Amazon shipping, parcel delivery your customers already trust. Many Americans short change their 401k accounts when they switch jobs, according to a

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