Are you one of the many, many Americans taking part in the Great Resignation? If you are, or if you’ve been forced from work because of the pandemic, you may be weighing all your options right now. But if you’ve saved for retirement, it’s important to keep saving and making certain your retirement goals are still being pursued.

What Is The Great Resignation?

Without question, there have been major changes and challenges over the last few years. What that means is that many people are more concerned about their health, their family’s health, the amount of time spent commuting, whether they like a job that they’re commuting to, and so on.

What’s making people so dissatisfied? Many, many people were laid off or furloughed during the height of the pandemic. This felt like employers in mega-corporations weren’t doing enough to keep their employees onboard. Smaller companies went out of business, and some owners are taking this time to reflect on what they want to do next.

The Great Resignation refers to the current phenomenon when people are leaving their jobs in droves due to dissatisfaction. Workers in the past few decades have been valued less and less, and this has finally reached a boiling point. With so many workers, there are those who have suggested there is a lack of willing workers, but this is not technically the case; what’s occurred is that workers are beginning to recognize their own worth and are determined, or hopeful, that they will be able to find employment suitably inspiring.

The Great Resignation As It Is Now

Without question, there have been major changes and challenges over the last few years. What that means is that many people are more concerned about their health, their family’s health, the amount of time spent commuting, whether they like a job that they’re commuting to, and so on.

What’s making people so dissatisfied? Many, many people were laid off or furloughed during the height of the pandemic. This felt like employers in mega-corporations weren’t doing enough to keep their employees onboard. Smaller companies went out of business, and some owners are taking this time to reflect on what they want to do next.

In fact, most of the Great Resignation is a matter of reflection. When workers do not feel adequately valued, they get dissatisfied. If a company is lucky, a dissatisfied employee leaves and finds contentment someplace else. If they stay, they can be argumentative and truculent. So, this has been a time for the workers of the United States to really take a step back and see what they want to do with their next journey in life.

Related: What to do with Your 401k When Changing Jobs

Essential Workers Really Are Essential

Workers deemed “essential” by the pandemic have been leaving their jobs as well. After being touted as necessary and important during the height of the pandemic, they’re now better able to leverage into new jobs and roles because of their success. This is a good thing for employees. That’s right, resignation can be a good thing, when one has another place to land.

Employers are often at a loss as to why they lose employees. Sometimes there’s a lack of leadership above, sometimes the work is dissatisfying. Often, though, employees making minimum wage at a job where they feel unappreciated will go ahead and try to find something else, that they deem better.

Restaurants are being extremely hard hit, which means there’s a very visible pain point for restaurants. It takes longer to be seated, to order drinks, to order food, to get your meal, and so on. Better customers, who are willing to wait, will have to take the place of those who are behaving badly by being irate that their demands are not met. But it’s a sign of the times.

Related: The Gig Economy and Your Retirement

Your Retirement and The Great Resignation

As you continue to pursue goals and dreams of your own, perhaps it will be time to really face your future and try something new. This could mean pursuing a passion project, or following in the family business, or any number of other things. Just make certain as you go on your path that your retirement savings are something you have kept in view.

A Solo 401(k) plan is a 401(k) qualified retirement plan that was designed for self-employed individuals and small business owners with no full-time employees, excluding a business partner and spouse. Much like the traditional 401(k), this unique plan encourages individuals to save for retirement in a tax-advantaged environment. When participants contribute funds into the Solo 401(k), taxes on the funds will be deferred until the participant takes a qualified distribution.

The Solo 401(k) is an IRS-approved plan that has the same rules and requirements as a traditional employer-sponsored 401(k). However, the Solo 401(k) allows participants to make annual contributions to the plan as both an employee and employer, which ultimately increases the yearly maximum contribution limit.

Also known as a self-employed 401(k) or individual 401(k), individuals can benefit even if they generate a portion of their total income through self-employment activities, such as a freelance gig. What are the Benefits of the Solo 401k?

The Solo 401(k) plan provides many benefits to individuals who are eligible for the plan, including the ability to make higher contributions. For example, the total annual contribution for a Solo 401(k) is $58,000 for participants who are under 50. Participant who are age 50 and over can contribute up to $64,500 to the plan in 2021. This is because the Solo 401(k) has two types of contributions:

• Employee salary deferral contribution: Employees can contribute up to $19,500
• Employer profit-sharing contribution: The annual limit is 25% of the employee’s pay, or 20% if you’re self-employed

Related: 401k Rollover to Self-Directed IRA

If You Can’t Resign, But Are Thinking About It

Some people are not leaving but are relaxing their work habits. Instead of getting paid for a 40-hour work week, but really working 50 or more hours, they’re deciding to prioritize their health and family over a corporation that would as soon cut them as keep them. The Great Resignation is forcing workers to look to their own futures, knowing corporations and companies may not have their best interests at heart. Before resigning, IRA Financial Group recommends assessing your current debt level, using our strategies to get out of debt, and assessing your existing budget. IRA Financial Group also recommends considering your retirement options, diversifying your assets, and planning for the future. Contact us to learn more about diversifying your retirement funds today!

Related: Jobs Anyone Can do to establish a Solo 401(k)

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