Switching jobs? There’s more to do with your 401(k) than just rolling it over

AP Business Writer

Switching jobs can be a great way to increase your pay, but make sure it doesn’t hurt your retirement savings. After switching to a new employer, a worker’s contributions to their 401(k) could drop sharply unless they take the extra step of signing up for the 401(k) plan and deciding how much of their paycheck to contribute. Many do not, and the total hit to a nest egg could reach $300,000. That’s according to a recent study by Vanguard, which estimated what a retirement savings slowdown could mean for a worker earning $60,000 at the start of their career who switched jobs eight times across employers.