What changing jobs means for your retirement plan
Career transition
A career change—whether your choice or not—can have implications for your financial strategy, including your retirement.
Smart moves
Different stories, same steps
Whether you’re switching jobs by choice or by chance, a job transition checklist is surprisingly similar.
The way forward
A checklist for different types of job changes
Manage stress & emotions
Changing jobs is a major life event. Lean on friends, family, or therapists for support.
Update your benefits
Health insurace is often the most important—look into COBRA, your spouse's plan or private or public coverage.
Claim available support
If you were laid off, you might qualify for benefits from your previous employer like unemployment, severence or job search help.
Build a job gap budget
With potentially less money coming in right now, adjust your budget to match your current needs.
Revisit your goals
Reflect on your financial, career, and
Plan your next steps
A clear to-do list will help you stay focused and move forward with purpose.
Update your resume
A job transition is a good time to refresh your resume and LinkedIn profile.
Compare compensation
When comparing new roles, look beyond salary—consider the value of the full package (e.g., health benefits, retirement account match, vacation time, etc.).
Bridging the gap
What if I’ve been laid off?
Job loss is never easy—if you have retirement savings, they can still work for you. Here are a few steps to consider.
- Think twice before cashing out. Only withdraw from your account if absolutely necessary, and check whether you qualify for a hardship withdrawal to avoid penalties.
- Stretch what you have. Use
budgeting tools to help make your current savings last longer. - Get guidance. Connect with a financial advisor to discuss your options.
A shifting approach
How a job change can affect you at different career stages
Getting laid off or changing jobs can affect more than just your paycheck. It can also change your long-term plans for retirement. Know what it might look like at different points in your life, and how to keep moving forward.
You’re starting out in your career
Changing jobs early in your career can feel stressful. The good news is you still have time for your money to grow. Even small, steady savings can make a big difference over time.
- Keep saving what you can, even if it’s just a little each month.
- Side jobs, freelance work, or tax refunds can help you keep adding to your savings.
- Use
tools to track your progress—starting early gives your money more time to grow.
You’re mid-career
At this stage, you might be paying for a home, kids’ schooling, or helping your parents. A job change now can make money tight and slow down your savings. Focus on protecting what you’ve already saved but keep contributing to retirement if you can, even if it’s less than before.
- Think about whether you need to change your career path, especialy if your field is shrinking.
LinkedIn has many resources that can help with acareer transition . - Use this moment to update your long-term financial plans.
- Consider how changes to Medicaid and SNAP could affect your household.
You’re near retirement
Later in your career, a job change can bring new opportunities — whether it’s a transition you choose or one that comes unexpectedly. It may take more time to find the right fit, or you may decide to shift into part-time, consulting, or purpose-driven work that keeps you engaged while protecting your savings.
- If you’re over 65, a new tax deduction could influence your withdrawal strategy. Talk with a financial advisor about how to put it to work.
- As you plan ahead, include programs like Social Security and Medicare as part of your broader retirement strategy.
- Review your will and any giving plans. You can continue supporting the causes and people you care about, even if you do it in a new way.
Your solution
Understanding your options for your retirement savings
With the essentials in place, you can make some clear-headed decisions with any retirement savings you have.
Leave your savings where they are
What this means: Your savings stay put. You don't roll over or withdraw—just leave it in your old plan.
You don’t have to move your money if you don’t want to. You’re free to keep your funds in your ex-employer’s TIAA retirement plan to get continued access to unrivaled service and benefits.
Benefits
- Your money keeps growing without paying taxes until you take it out
- Your former employer’s plan may have lower fees or special features that a new plan doesn’t
- You don’t risk making mistakes that could cost you taxes or penalties
- No effort required to transfer or open a new account. If the plan works for you, leaving your money in a former employer’s plan can be a smart move
- If you’re a TIAA participant, you’ll have continued access to TIAA products, including TIAA Traditional—our flagship product that offers guaranteed income for life. You’ll also have the opportunity to earn a TIAA Loyalty BonusTM as a long-term save as well as built-in financial advice at no added cost from TIAA consultants
Considerations
- You won’t be able to make additional contributions to your former employer’s plan
- If your new employer uses a different provider, you'll have multiple accounts to manage
- If you’re a TIAA participant, you'll lose access to TIAA-exclusive features like lifetime income from TIAA Traditional and TIAA’s Loyalty BonusTM
What to do next if you’re considering leaving your money where it is:
- Make sure your contact information is up to date so you can receive statements or notices
- Review who you’ve listed as your beneficiaries—the people or entities who’ll receive your money when you pass away
- Keep track of any fees associated with leaving money with a previous employer
- Set a reminder to review this decision once a year and make sure it supports your retirement plan
Move to your new employer's plan
What this means: You put old funds into your new workplace retirement plan, if both your old and new plans allow it.
Benefits
- Simplifies tracking and managing your retirement savings in one place
- May allow you to take advantage of employer matching contributions and plan specific perks
- Easier to set how much you’re saving
Considerations
- Plans may vary—look carefully at your new plan to understand fees and investment options
- Confirm with your new provider whether they accept incoming rollovers
- If you’re a TIAA participant, you'll lose access to TIAA-exclusive features
- Many retirement plans don’t have a product that offers guaranteed income for life or bonus program for long-term savers
What to do next if you’re considering moving your savings to a new employer’s plan:
- Review your new employer’s plan features and fees
- Ask HR if rollovers are accepted and what’s required
- Request a direct rollover form from your old plan
- Confirm transfer completion and update your records
Roll funds into your IRA
What this means: You open a personal Individual Retirement Account (IRA) and transfer your funds there.
Benefits
- Many institutions offer a wide array of investment choices from mutual funds to annuities. Be sure to check what options different IRA providers offer
- Great for consolidating old 401(k) or 403(b) accounts
- No requirement to link to a specific employer
- If you’re a TIAA participant, you’ll have continued access to TIAA Traditional if you choose a TIAA IRA
Considerations
- Complete a direct rollover (account to account) to avoid taxes and penalties.
- An indirect rollover—when the check comes to you—may be subject to tax if not properly handled
- Once in an IRA you'll be subject to IRA specific rules, including required minimum distribution.
- No loan option like some workplace plans
What to do next if you’re considering rolling your savings into an IRA:
- Open a Rollover IRA with a provider of your choice (TIAA is one option)
- Request a direct rollover from your old plan. Avoid having the check made out to you—an indirect rollover. This can increase the likelihood of your savings being taxed
- Choose investments based on your time horizon and risk tolerance
Withdraw your savings
What this means: Cash out some or all of your retirement plan and receive the balance.
For you if you need immediate cash and are willing to pay taxes and a penalty to receive it.
Why it’s not recommended:
- You'll owe income tax on the entire amount
- If you are under age 59 ½, you’ll pay a 10% early withdrawal penalty
- You'll lose years of potential growth through compounding interest
What to do next if you’re considering withdrawing your savings in part or full:
- Explore alternative funding sources first (collecting unemployment, tapping into emergency savings)
- Use budgeting tools to reduce pressure to cash out
- Talk to a tax professional about potential tax implications
- Talk with a financial advisor before considering this move. If you’re a TIAA participant, consultations are available at no additional cost to you.
Dive deeper: Thinking about using your retirement savings early?
Next steps
Here’s what you can do next
At this point, you may know what you want to do with your account, or you may need some help deciding. Explore ways you can take action or get in touch with us for guidance.
Talk with an expert
Meeting with a financial professional can help you feel more confident about the way forward. For TIAA participants, consultations are included at no extra cost.
Get a clearer picture
Not sure how your job change affects your long-term goals? Our online Retirement Advisor can help guide TIAA participants’ choices—fast, free, and on your schedule.
Review your benefits
Log into your TIAA account, review current investment allocations, fees, and check your Loyalty Bonus status. Understand how staying with TIAA could affect your future.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
Income and withdrawal options are subject to the terms of the employer plan. Withdrawals prior to age 59½ may be subject to a 10% federal tax penalty, in addition to ordinary income tax.
Distributions from 403(b) plans before age 59½, severance from employment, death, or disability may be prohibited, limited, and/or subject to substantial tax penalties. Different restrictions may apply to other types of plans.
Wealth Management Advisors provide Individual Advisory Services on a fee-for-services charge to the employee and are provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment adviser. Individual Advisory Services may not be available to all participants.
Financial consultants provide advice and education using an advice methodology from an independent third-party.