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Financial planning isn’t just about money. It’s about giving yourself the freedom to pursue work that sparks meaning and purpose.
Changing careers is one of the biggest life transitions many of us will ever face. Whether it’s by choice or circumstance, stepping away from the familiar and into something new requires more than courage, it requires financial planning. A well-thought-out plan can turn uncertainty into opportunity, allowing you to explore new paths without jeopardising your financial wellbeing.
Over the years, I’ve advised clients navigating career changes for many reasons: involuntary or voluntary redundancies, relocation to another city, or simply wanting to try something different. While their stories vary, one thing is constant: careful financial planning has allowed them to make confident decisions, avoid unnecessary stress, and even discover new freedoms.
Here are three real life clients I’ve helped with their career moves
Voluntary redundancy – creating space for a ‘mini retirement’
One of my clients, a professional in her mid-40s, accepted a voluntary redundancy (VR). She had never taken extended time off during her career and was feeling burnt out. Instead of rushing straight into another job, we allocated part of her payout to fund a six-month “mini retirement.”
This strategy provided her with financial breathing room and the mental space to reassess her career direction. We earmarked funds to cover living expenses, built a clear budget, and set aside a safety net for unexpected costs. By planning for this break, she could enjoy time off without guilt or fear of financial strain.
Tip: If you’re offered a VR, don’t just view it as a lump sum payment—see it as an opportunity. With smart planning, it can buy you the time and flexibility to pause, recharge, and decide your next move with clarity. Or used to accelerate your investment portfolio.
A new start after 60 – using superannuation strategically
Another client, aged 60, wasn’t ready to retire but wanted a new challenge. What many people don’t realise is that changing jobs after 60 triggers a *condition of release* in superannuation. This opens up powerful planning opportunities.
For this client, we accessed part of his super to pay down debt and reduce tax liabilities, while leaving the remainder invested for growth. This strategy not only strengthened his balance sheet but also gave him confidence as he stepped into his new role.
Tip: For those over 60, a career change can be the perfect time to revisit your retirement strategy. Accessing superannuation doesn’t mean you have to stop working; it simply gives you more levers to pull when restructuring finances.
Breaking free from defined benefit ‘golden handcuffs’
A common theme in my work has been advising public servants and academics who are members of defined benefit schemes. These schemes often provide excellent long-term security, but they can also act like “golden handcuffs,” making people feel trapped in roles that no longer bring them joy or meaning.
One recent client, an academic, faced a dilemma: remain at his university to preserve his defined benefit or leave to join a private company commercialising his research. His fear was that walking away from the scheme meant jeopardising his retirement.
I explained that career fulfilment should never be sacrificed for super alone. Defined benefits can often be preserved, with the option to rejoin if a career move doesn’t work out. In his case, we modelled multiple scenarios and confirmed he could comfortably retire even without relying on the scheme. The reassurance gave him the confidence to pursue the opportunity, knowing his financial future remained secure.
Tip: If you’re in a defined benefit fund, get personalised advice before making a decision. While the benefits are valuable, they shouldn’t dictate your entire career trajectory.
My own leap of faith
I know this personally too. Years ago, I left the security of the public service and a defined benefit scheme to give the private sector a go. To give myself confidence, I had a cash buffer and worked out exactly how many months I could cover my mortgage and living expenses. At the time, I was single, pre-kids, and still early in building wealth, but I did have a mortgage to manage and no one to financially support me.
I also highlighted my transferable skills, moving from ComSuper and the Department of Finance’s superannuation team into financial planning. My dad’s financial planner kindly passed my résumé around to his peers in Canberra, which landed me my first role in advice.
My tip is this don’t just financial plan – use your networks to help you change careers into something that sparks passion.
Career, health and life are interconnected
Through all of these examples, one thing has become clear: our career, health, hobbies, family, and finances are deeply connected. When people are unhappy in their careers but feel unable to change, I often see them “therapy shop” – turning to spending, hobbies, or short-term fixes to fill a void. This can have a real flow-on effect to their financial wellbeing and even their retirement plans.
A career change, approached with clarity and good planning, can help avoid this cycle. It’s not just about money; it’s about aligning your life with your values and giving yourself permission to pursue something more meaningful.
5 practical steps for a smooth transition
While each client’s story is unique, there are common steps that can make a career change smoother:
- Build a cash buffer – Aim for at least three to six months of living expenses to cover unexpected gaps in income.
- Understand tax implications – Redundancies, superannuation withdrawals, and lump sum payments can all have tax consequences. Advice can help minimise tax leakage.
- Protect yourself with insurance – Income protection and life insurance remain crucial during transitions. Review your cover before leaving an employer, as some benefits may cease.
- Automatically track your spending – Think like a CFO would in a company. We auto-track our clients’ expenses through data feeds, without the hassle of manual budgeting. This vital information allows us to provide accurate, prompt advice when planning a career change. It also helps clients clearly see the minimum salary required to maintain their lifestyle and retirement goals.
- Use the opportunity to reset – Career changes aren’t just financial. They’re life changes. Factor in what will bring meaning and purpose to your next chapter.
Career changes can feel daunting, particularly when finances are involved. But with planning, they can be one of the most rewarding moves you make. Whether it’s taking a break after a redundancy, restructuring super at age 60, or shaking off the golden handcuffs of a defined benefit scheme, there are always strategies to smooth the journey.
As I often remind clients: your career is part of your life plan, not the other way around. Superannuation and financial security matter, but so too does having the freedom to pursue work that excites you. With the right advice, you can transition confidently, knowing your finances will support your next adventure.
Meet Gianna at Thomson Wealth or Find a Planner near you!
The Money & Life website is operated by the Financial Advice Association (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.
