Why Job Hopping Makes You Worse Off In Retirement

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Pensions? Those are far and few between. Companies rarely even offer those anymore. They claim the 401K are the retirment programs they offer.
Anyone who counts on pensions probably has delusions that Social Security will still be there when they retire.

Tim Tieberson of CO 1:17PM January 27, 2010

Do the job hoppers not get more regular income each time they jump generally speaking. With all the extra income how does their total income compare vs the staying put type say over a 30 year period - all other factors being the same? Notice, I asked for earning over the 30 years not net worth, which assumes that you saved something.

AR of VA 12:46PM January 27, 2010

I deal with these type of people all the time, woah is me, the gov focked meh, the world is ending, DOW negative 5000. Come on people wake up and smell the coffee, the world is not so bad. Maybe your life suks because of bad decision making, but they were your decisions. Be smart with your money and you will slowly build wealth over time, thats all, very easy formula.

Peezi of NV 1:17AM January 27, 2010

screwed!!!! by a self serving corrupt corporate system. At least the big cheese get their huge bonuses; otherwise we'd be worse off without there superman talents. Talents needed to run the business in a manner that makes sense for the stock holders and the economy in general.. The only Green movement here is directly into their pockets.. Check the Stock market today and all the negativity on a bleak outlook. Did you see the DOW this week that's your pension..OR is merely a "HOUSE OF CARDS" People ; A HOUSE of CARDS..

JJP of OH 4:23PM January 22, 2010

screwed!!!! by a self serving corrupt corporate system. At least the big cheese get their huge bonuses; otherwise we'd be worse off without there superman talents. Talents needed to run the business in a manner that makes sense for the stock holders and the economy in general.. The only Green movement here is directly into their pockets.. Check the Stock market today and all the negativity on a bleak outlook. Did you see the DOW this week that's your pension..OR is merely a "HOUSE OF CARDS" People ; A HOUSE of CARDS..

JJP of OH 12:23PM January 22, 2010

No loyalty by employer's, no loyalty returned to employers for the most part.
Long term employee's become expensive and there fore expendible.
Employers seem to, or have to, cut costs thanks to consumers chasing things as cheap as possible.
It is why the North American economy is collapsing.

Tom 4:47PM January 21, 2010

1) Well-planned job hopping can get you up the career and salary ladder faster.
2) What's a pension? I heard my grandparents talk about these when I was a kid.

Chris of NH 9:55AM January 20, 2010

I'm not sure where Emily has been these past 15 years or so but what she describes in her article is exactly what the corporate world has planned for by going to cash balance accounts. Most large companies tell you to think in terms of about 10 years for a typical career. They encourage job hopping by way of their incentives and periodically have purges to keep the number of long term employees to a minimum. They don't want to end up like some of the auto companies where there are more retirees on the roles than active employees. Its not that people actually have a tendency to job hop these days but they are encouraged or even forced into doing so by way of current corporate practices.

Frank of NJ 9:47AM January 20, 2010

A lot of employers actually make you wait 1 year before you contribute to a 401k.

M.L. of NY 1:43PM January 16, 2010

In a recession, lots of employees get laid off, especially newer, low-ranking employees. They lose their income and never get a chance to contribute to a retirement plan. This is yet another reason Social Security is drying up sooner than expected.

Heather Czerniak of WI 3:50AM January 16, 2010