Want to Quit Your Job? Use This Checklist to Ensure You Are OK Before You Do
Millions of people are quitting their jobs for a variety of reasons. It could be because they want to switch careers, are experiencing burnout or are no longer excited about their jobs. You might also be interested in joining the “Great Resignation”, but there are a few things you need to check to ensure you will be fine before you do it.
Take Stock of Your Finances
Before you resign, you need to ensure you have enough financial resources to remain afloat until you find your next job. You also need to check your spending habits so you can compare them against your resources. Ideally, you should have enough money to last you about 3-6 months as this is how long it might take to get a new job. Next, take a look at what your employer subsidises and offers you in terms of benefits. Retirement savings, healthcare, stock options and commuter benefits are some things you will give up when you quit.
Use Your Flexible Spending Account
Your flexible spending account will not move with you to your next job. You need to ensure you use the available funds before you go because you will lose that money. With a healthcare FSA account, you can use as much or all of the money in it even if you have only contributed a portion of it. If you have set up dependent care, you can only use the amount you have added to the account. Some FSA plans give you a grace period to submit claims. However, they only reimburse you for eligible expenses incurred before the day you quit. It is therefore important to stock up on the medical supplies you need before quitting.
Go for a Medical Check-up and Refill Your Prescriptions
If you have a health insurance plan under your current employer, you may be entitled to a full medical check once a year. If you have not had one, make an appointment before your health insurance is no longer valid. Also, ensure you refill any restrictions that are covered by your current insurance. In many cases, you have until the day you quit to do so, although some employers will give you until the end of the calendar month you quit for the health insurance to lapse.
Get Personal Private Health Insurance
Going without health insurance coverage when you are looking for a job is a huge risk. If you do not have insurance, you have to rely on the NMS or pay out of pocket for any healthcare needs you have. Getting health insurance on your own will help you avoid these complications and charges. Since you want to save as much money as you can, take advantage of health insurance comparison sites. For instance, to find affordable health insurance quotes in Northern Ireland, you can use platforms like Compare NI which make it easy to compare health insurance quotes from the best insurance companies in Northern Ireland.
Investigate Holiday and Sick Leave Compensation
Some companies will write off your unused sick or holiday days when you quit. However, some handle accrued time differently and might cut you a check for this unused time. Just keep in mind that you cannot expect to get a lot out of the company as many will have a limit on how much they pay for this. If you cannot investigate the policy or know you won’t be compensated for the accrued time, you can always use it up before you leave. You have earned this time and it is yours to use as you see fit.
Transfer Your Pension Plan
If you have a pension plan, you can transfer your funds to another pension plan, but you need to know there are some things to consider. For one, you cannot transfer your pension within one year of when you are supposed to start drawing retirement benefits. Second, you will have to pay taxes on the transfer, even though the fund will remain tax-exempt until you start drawing from it. This is because the government considers such a transfer, or withdrawal if you refer, an unauthorised payment.
Learn About Vested Benefits
Many companies, especially start-ups, have vested benefits. These are stocks and retirement contributions that you only have access to once you are fully vested. The process often calls for you to work in the company for several years or complete specific requirements before you are eligible. Leaving before you are 100% vested means you risk losing some or all of your benefits.
You should think about what you will be leaving behind and the changes you need to make before you leave your job. By doing this, you will know if this is the right time to leave and you can plan your exit appropriately.
Poppy Watt