A career change is a financial decision, too.

Possibly, but salary alone does not determine whether the move is affordable. AimWell can model how the change may affect your monthly cash flow, savings rate, taxes, retirement contributions, healthcare costs, debt payments, and progress toward longer-term goals.

We also compare benefits, bonuses, equity compensation, paid leave, commuting costs, flexibility, and other factors that affect the real value of the offer. A lower salary may still work if it improves other parts of your financial or personal life, but the tradeoffs should be understood before you commit.

The goal is not simply to determine whether you can accept less. It is to understand what would need to change, what you may be giving up, and whether the opportunity supports the life and career you want.

Start with total compensation, not base salary alone. Compare bonuses, equity compensation, retirement contributions, health and insurance benefits, paid leave, commuting or relocation costs, and any other benefits that affect the real financial value of each offer.

Then consider the factors that are harder to price but may matter just as much, including flexibility, schedule, travel, job security, advancement opportunities, company culture, family responsibilities, and whether the role moves you toward the career and life you want.

AimWell can help you talk through the options, weigh the financial and lifestyle tradeoffs, and model the near- and long-term impact of each offer on cash flow, taxes, retirement savings, benefits, and equity compensation. The better offer is not always the one with the larger headline number. It is the one whose overall financial and personal impact best supports your priorities.

Start by slowing down and reviewing the full separation package before making major decisions. Confirm when your salary and benefits will end, what severance or unused leave will be paid, whether any equity compensation or retirement benefits require action, and which deadlines apply to health insurance or other coverage.

Next, estimate how long your available cash may support your household and identify expenses that can be adjusted temporarily. Avoid immediately cashing out retirement accounts or making major investment changes simply because income has stopped.

AimWell can help you evaluate the severance package from a financial-planning perspective, model how long your resources may last, compare health-insurance options, plan for taxes, and determine which decisions need attention now. If the agreement includes legal restrictions, releases, or employment terms, an employment attorney should review those provisions before you sign.

Review benefits before leaving a job whenever possible, because coverage may end sooner than expected. Confirm the termination dates for health, disability, and life insurance, then compare the new employer's coverage, costs, deductibles, provider network, waiting periods, and effective dates. A new employer may impose a waiting period before coverage begins, so even a short transition can create a gap.

If health coverage will lapse, possible alternatives may include COBRA, a spouse or partner's employer plan, or individual coverage through the Health Insurance Marketplace. COBRA can temporarily continue eligible employer-sponsored health coverage, but the individual may have to pay the full premium plus an administrative charge.

Disability and life insurance deserve separate attention. Employer-provided coverage may not follow you to the next job, and replacing it later may depend on cost, eligibility, health, and the terms of the new policy. AimWell can help you compare the financial impact of the available options and build the cost of replacement coverage into the transition plan.

Start by identifying exactly what you own and what changes when your employment ends. Stock options, restricted stock, restricted stock units, employee stock purchase plans, and other forms of equity compensation have different vesting schedules, exercise rules, tax treatment, and plan-specific deadlines. Some unvested awards may be forfeited, while vested options may have a limited exercise window after departure.

Before resigning or accepting another offer, review the grant agreements and confirm what is vested, what may vest soon, when options expire, and whether any decisions are required. Exercising or selling equity can create ordinary income, capital gains, withholding obligations, and, in some cases, alternative minimum tax.

AimWell can help evaluate the equity alongside your cash flow, taxes, concentration risk, investment strategy, and broader financial plan, while coordinating with your CPA or tax professional before you exercise, sell, or allow an award to expire.

A career transition can change both the amount and timing of your taxes. Severance, accrued vacation or sick pay, unemployment compensation, bonuses, equity compensation, and income from both an old and new employer may all fall within the same tax year. Severance and payments for accumulated vacation or sick time are generally taxable, and the withholding may not fully reflect your ultimate tax liability.

Moving into consulting or self-employment creates a different set of responsibilities. Without an employer withholding taxes, you may need to make quarterly estimated tax payments and account for both income tax and self-employment tax.

AimWell can help model the income change, estimate the amount that should remain available for taxes, and coordinate the timing with your broader cash-flow plan. We'll also work with your CPA or tax professional so the transition does not create an avoidable surprise at filing time.

You may have several options: leave the money in the former employer's plan, move it to a new employer's plan if permitted, roll it into an IRA, or withdraw the balance. The right choice depends on the plan's investment options and fees, the services and flexibility you need, tax consequences, creditor protections, and how the account fits into your broader financial plan.

Avoid assuming that a rollover is automatically best, and be especially cautious about cashing out. A taxable distribution may create income taxes and, depending on your circumstances, an additional early-withdrawal tax. If you decide to move the account, a direct rollover generally avoids current taxation and mandatory withholding on the transferred amount.

AimWell can compare the available options and help determine which one best supports your investment strategy, retirement plan, tax situation, and need for simplicity or flexibility.

Let us help you determine whether the break is financially workable and how to prepare for it. A career break may be used for caregiving, health, travel, education, family time, recovery from burnout, or simply deciding what you want next.

Chris Manzione, AimWell's behavioral finance specialist, and the broader team can help you explore what you want the break to make possible, what may be driving the need for change, and how much flexibility you want while deciding what comes next.

If a career break is being considered, AimWell can model how long your savings may support you, identify expenses that may change, and plan for health insurance, taxes, retirement contributions, and the loss of employer benefits. We can also explore different scenarios, such as taking a full break, working part time, consulting, or returning to work on a different timeline.

You do not need to know exactly when or how you will return before planning begins. The goal is to understand what the break may require, preserve enough flexibility for the unexpected, and give yourself room to make the next career decision thoughtfully.