Showing posts with label Change Your Career. Show all posts
Showing posts with label Change Your Career. Show all posts

Tuesday, April 27, 2021

Financial and Other Necessary Tips to Change Your Career in Your 50s

Do you think you are too old to change your career after turning 50?

You may have spent the first half of your life working to earn a living. But, now you’re ready to do what you’ve always wanted to do work for personal satisfaction.

It’s never too late to make a career change. We all need money to satisfy our needs and maintain our lifestyle. However, it is possible to earn money and find personal satisfaction in your work. 

Many people spend their lives working to support their families. Now is the time to focus more on job satisfaction and using your talent.

If you’re over 50 and considering a career change, you have a lot going for you.

One of the most significant advantages of changing your career after 50 is that you have a good network. By connecting with your network, you will have the opportunity to choose a job where you’ll find better job satisfaction.

According to the U.S. Bureau of Labor Statistics, women are more likely to change jobs than men.

An article published in states that since the average age of retirement is rising, many people over 50 are changing careers.

“People aged 50 and over are in a unique position to have plenty of workforce experience to bring to a new career, while still being able to obtain the knowledge they need to take on something new.”

Before making this major change, you should be sure to have your financial life in order first. This will create a smoother transition to your new life after 50. Here are a few financial and other tips for a midlife career change.

Have a fat financial cushion

Try to have six-figure savings account if you’re thinking of making a career change around your 50s. It will help you have a cushion to support your lifestyle if you face any financial issues.

It’s always good to have a savings account, but it’s better to put your money to work, making your savings more useful.

According to, men earn about 127% more than what they made at the beginning of their careers, on average.

Do not hamper your retirement savings

The Internal Revenue Service (IRS) allows additional contributions to 401(k)s if you are 50 years or over. In 2021, you can add $6,500 as catch-up contributions for a total contribution of $26,000 to your 401(k).

So, make sure you can keep up with 401 (k) contributions during your transitionary period.

It’s a good idea to ask if you can rollover your 401(k) from a previous employer into an account with your new employer. Some companies may require a waiting period before allowing you to participate in the new plan. When changing jobs, you can also consider rolling your existing 401(k) to an IRA.

You also have the option of leaving your 401(k) with your previous employer, even if you switch jobs. Experts suggest that it’s a good idea depending on the amount in your old 401(k).

Reach out to your network

You likely have a solid network by now. It is time to use your contacts to grab your dream job.

Some companies and organizations prefer to recruit employees with a lot of experience by offering attractive packages and perks.
Update your skills

You may need to update your skills to make a career change in your 50s. This is easy to do by taking an online course while continuing your current job. You will learn the necessary skills and continue earning at the same time. It may take time and patience, but it’s a much safer route than losing your income in the meantime.

Do not switch only for money

Money should not be the only deciding factor in a career change. You need to consider placing importance on personal satisfaction, self-actualization, and your health. Anything that negatively impacts those areas of your life can have devastating long-term effects on your well-being.

Make plans to pay bills

When making a career change make sure there is a plan in place to pay your credit card and utility bills. Also, make plans to take care of your monthly mortgage or car payments, if any. Depending on the change, it could mean a decrease in income. So, be sure you know how everything will be taken care of.

It may be difficult if you have huge debts to pay off. You can get professional help with any excessive debts. Depending on your financial situation, choose consolidation or settlement to repay multiple debts through single monthly payments to become debt-free.

Build a good emergency fund

Build an emergency fund that can satisfy your basic needs for six months if you have a total loss of income. This will help you to pay and tackle any financial emergencies.

I will end this article by sharing Andrea’s story. She left her job at age 53 after she got a divorce. At first, she was worried about her expenses. So, she lived like a grad student and saved from the small alimony payment she received. 

She says that it would have helped her if she had an emergency fund. Andrea made sure to get a higher-paying job once she completed her graduation.

She says, “I also worked my networks and attended professional conferences during grad school, and that helped me to become employed immediately after I graduated. I’m much happier now.”

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