3 things to update when you change jobs
Changing jobs is an exciting transition – from settling into a new workplace to advancing your career, there’s a lot to look forward to when making the move. At the same time, there are also some practical considerations to make. Here are three things you might need to update when making the move.
Your approach to your finances
If you’re going to be making more at your new job, it’s worth slowing down and thinking about what you’ll actually do with the money. According to Queensland-based financial services firm, Soundbridge, lifestyle inflation — a phenomenon that sees you subconsciously increasing your expenses in proportion with your income — can creep up on you. If you’re not careful, you can blow through your entire pay check in the blink of an eye!
Instead, give your money a mission. Maybe your new salary will allow you to save another $200 a month towards your dream holiday, or up your savings rate by 10%. This kind of foresight will help you make the most of your new salary.
When moving into a new role, it’s important to let your employer know where to pay your super. You can nominate your current super fund or proceed with your employer’s chosen fund. If you were previously in an employer fund, you’ll likely have to change funds when you start your new role.
No matter what fund you belong to, make sure your new employer pays your contributions into the right fund. If you don’t nominate a fund, your employer will have to open up an account for you. This can result in you losing track of your super and having to pay fees across multiple accounts.
Your life insurance or income protection cover
If you end up changing super funds, be mindful of the impact this may have on any income protection or death cover you have as part of your super. Your new fund may also offer insurance cover, although the fees and coverage details might differ. All these factors might influence whether you choose to stay with your current fund, change funds, or get insurance outside of your super.
If you already have life insurance or income protection cover outside of your super, you may need to revisit your coverage if your salary has changed or your new job is more high risk. Like other big life changes, it’s best to speak to your insurer when you change jobs to know how your policy may be affected. This ensures you always have the best possible coverage for you, and don’t suddenly find yourself underinsured.
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