A career change represents a pivotal moment, often fraught with emotional challenges and frequently accompanied by financial hurdles. Beyond the mere loss of income, paying attention to the impact on your cash flow is crucial. Planning for your future is a critical aspect that is often underestimated.
A career transition also allows you to assess your financial health and explore ways to enhance it. However, what specific aspects should you focus on before and after the termination of your employment contract ?
01. Before Contract Termination
Before you cease working, consider establishing a vested benefits account to transfer your pension plan funds. Whether you intend to :
- Return to paid employment,
- Start your own business,
- Opt for early retirement,
- Or even pursue expatriation,
Each scenario is unique and necessitates a personalized plan based on your objectives, age, and plans. If a severance payment is imminent, contemplate planning for its tax impact, such as buying back years in your pension fund. This payment can be made right up to the last day of contractual employment.
02. After Contract Termination
It is crucial to adhere to the deadline for transferring your pension funds to your vested benefits account, typically within six months. For most individuals, this capital constitutes a significant part of their assets. For instance:
- Ensure you retain control over your funds and prevent them from being absorbed by substitute institutions.
- Utilize this time to evaluate your assets, plan for retirement, and structure your finances.
If you secure a new job, it is advisable to examine the pension plan offered by your prospective employer and seek appropriate advice.
03. Anticipating the Future
A professional change is a momentous milestone in your life. We are here to support you in your reflections and plans. Do not hesitate to contact us to discuss your aspirations.
