A career change can be a really big deal, leaving your comfort zone and colleagues that you know and trust. So, it makes sense that such a move should be thought about carefully and that peripheral factors are considered as well as the more focused issues such as the nature of the work and the level of responsibility.
One such peripheral factor is your pension, a change in career is the perfect opportunity to reassess and build a better pension plan.
Moving Up the Ladder
For many people, a change in career also means moving up the career ladder. A new role with greater responsibility, greater challenges, and of course, a better remuneration package. If this is the case, then you are left in the enviable position of working out what to do with the extra money that you will have coming in.
Jetting off on a luxury holiday may be a fitting reward for having secured your new job, but in the longer term, you may decide that making the extra money work for you is the best course of action.
A New Financial Plan
Formulating a new financial plan is a great place to start, here there are many exciting areas for you to explore and contemplate.
A workplace pension is, generally speaking, a very good idea, as it is tax-free, may attract contributions from your employer, as well as yourself, and works as a good foundation from which to build something more substantial. So, for most, opting out isn’t on the table, but what about an additional investment for the future?
In terms of additional investment, there are many products worth looking into, one of which is a Self-Invested Personal Pension Plan or SIPP. Available from trusted online investment companies like Bestinvest, SIPPs a type of personal pension scheme that lets you take control of how the capital you put in is invested.
A SIPP is flexible and gives the user access to opportunities that vary in terms of exposure to risk. You can play it safe and choose low risk investments, these will accrue a lower return over a longer period of time, or choose an investment that has a higher risk factor. The higher the exposure to risk, the greater the potential for substantial returns.
It is extremely common for people to have several pension schemes and other types of investments that are helping them build for the future.
Other Types of Investment
When formulating your new financial plan, you should leave no stone unturned and so looking at other types of investment is a must.
People may look into buying a second home, such as a buy-to-let, as an alternative investment. This makes a lot of sense for a long-term investment because when you are ready to use the money, you can simply sell the house.
Building a better pension plan at a time when you are making a change in your career is a proactive and empowering thing to do – get it right and you may be retiring sooner than you think.