People who change jobs often might make more money than average in the long run. However, many of them experience opportunity costs that grow over time and a slowdown in retirement savings rates. A September 2024 Vanguard study of over 54,000 workers who changed jobs between 2015 and 2022 revealed that while the median job switcher received a 10% pay hike, their savings rate simultaneously dropped by 0.7% as the majority ended up with a reduced allocation to their employer-sponsored 401(k) accounts. Data showed that the average savings rate was poorer for those with smaller pay hikes or who began working for a new employer offering voluntary enrollment options for retirement plans.
