Leaving a job, whether its due to pursuing a new opportunity or facing a layoff, can significantly affect your retirement savings and future financial security. This reality is something Ive personally experienced, having navigated multiple job transitions throughout my career.

For the most part, Ive been diligent in rolling over my account balances from my former employers 401(k) plans into an Individual Retirement Account (IRA) that I then managed myself. However, I made a regrettable decision during one of my early career moves. I cashed out my 401(k), paid the associated taxes and penalties, and didnt think twice about it at that moment. Retirement felt like a distant reality.

Recently, I took a moment to reflect on that seemingly modest sum I withdrew all those years ago. Had I left it untouched, compounded over the decades, it could have blossomed into a significant amount. Its a sobering thought.

The excitement that often accompanies starting a new jobor the emotional upheaval of being laid offcan lead to a lack of attention toward retirement accounts associated with previous employers. This can pave the way for impulsive decisions similar to the one I made years ago, potentially jeopardizing long-term financial health.

If someone changes or loses their job, they need to be aware of what options are available and how they can continue saving, advised Ben Rizzuto, a certified financial planner and wealth strategist at Janus Henderson, in a conversation with Yahoo Finance.

One of Rizzutos most essential pieces of advice is straightforward: whatever your circumstances, aim to keep saving for retirement. While ensuring you can cover your necessary expenses should take precedence, if you can manage to save even a small amountbe it a few hundred or a thousand dollars todayit can grow into substantial savings over the years thanks to the power of compound interest.

Here are four key considerations to keep in mind as you navigate job changes and their impact on your retirement savings:

1. Pay Attention to Vesting Schedules

When moving from one job to another, its vital to understand the implications of vesting schedules associated with employer-matched contributions to retirement plans. Typically, these vesting periods range from three to five years.

While some companies offer immediate vesting for their employer contributions, theres no legal requirement mandating this. Thus, if you decide to leave a job before you are fully vested, you could miss out on a significant portionor even allof your employer contributions. This loss can deal a serious blow to your overall 401(k) balance, and unfortunately, theres no way to circumvent that reality.

According to a recent analysis by the nonpartisan Employee Benefit Research Institute (EBRI), the median tenure for all wage and salary workers aged 25 and older has remained around five years for the past four decades. This trend suggests that many individuals may have eight to ten jobs throughout their careers.

Craig Copeland, director of wealth benefits research at EBRI, emphasized, People are taking many job changes over the course of their working years. If they have a retirement plan, they are at risk of encountering a vesting issue at the very time they could be losing out on their employer contributions, especially with direct contribution plans like 401(k)s. And that can have significant negative repercussions.

Overall, awareness and proactive management of your retirement savings during job transitions can lead to more secure financial futures, preventing regrettable mistakes that could have long-term consequences.