Job Change Checklist for Baby Boomers

The youngest Baby Boomers between the ages of 42 to 48 years old, have held an average of more than 10 different jobs, according to a U.S. Department of Labor report. Job changes at any age can pose problems. Job changes after age 42, however, are often strategic - done to improve life or work or even to learn new skills. If you are a baby boomer considering a job change, here are a few things to consider.

Pension Protection

There are fewer and fewer employees offering pension plans. If you've been fortunate enough to work for an employer who does, find out what happens to your vested funds if you leave the company.

If it is possible to receive distribution of your pension money, consider rolling the funds over into an IRA. Don't forget that withdrawal penalties and taxes will apply.

Retirement Plan

If you have funds invested in a 401(k) plan, you'll need to investigate all the options available. Typical 401(k) options include rolling funds over to new employer plan, leaving funds in previous employer plan or taking a cash distribution. Each option has its own advantages and disadvantages. Consider them carefully.

Insurance

See what's involved in keeping health coverage intact during the job switch. How does the coverage at the potential employer compare with coverage at your current employer?

Cost of Living

How will changing jobs affect your cost of living? Will relocation be part of the switch? When looking at relocation, compare the cost of living at both your current address and your potential address. Don't forget to include city taxes and other such expenses. You can compare the cost of living for two cities at bestplace.net.

Stock Options and Grants

If you have stock options and grants, you'll need to assess their value. What will switching jobs cost you? Check with the benefits department to get full value information as well as to find out what you can and cannot do regarding the options and grants.

FSA and HSA Funds

Do you have unused FSA funds in a flexible spending account? Unused funds are usually forfeited.

The Big Picture

Look at the big picture. Some job benefits are priceless. Example: needing a flexible schedule in order to meet family obligations or to take care of an ill loved one. Finding an employer who provides flex schedules is worth a fortune in this case scenario.

When considering a job switch, look at all the details -even the small ones. Transportation allowances in a time of high gas costs are valuable benefits. Gym memberships and other such benefits can add up. Meeting with a financial planner can help you make the best, and most profitable, choice.