December 18, 2024
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THE MONEY MINDER

‘Assuming someone in the family needs to use the health benefits at some point, I am technically making less money.’: Should I take a new job for higher salary with less benefits?

‘Assuming someone in the family needs to use the health benefits at some point, I am technically making less money.’: Should I take a new job for higher salary with less benefits?

Hi Money Minder,

So, I’m in a bit of a pickle. I’ve got a new job offer on the table, but I’m not sure if I should take it. Here’s the lowdown:

Current Job:

  • Salary: $65k
  • Awesome health insurance with no deductible
  • Been there 8 years, pension fully vested at 5 years
  • 30 min commute, 3 days in the office
  • 23 days PTO, increases over time
  • 2.5% 401k match with profit sharing ($5k-8k/year)
  • Yearly bonus typically $3,000
  • Take-home pay after benefits: $1,734.68 bi-weekly
  • Not many promotion opportunities, low risk of layoffs

New Job Offer:

  • Salary: $85k
  • Health insurance is pricier with a deductible and higher copays
  • Pension vesting at 3 years
  • 6% 401k match, no profit sharing mentioned
  • 20 days PTO, increases over time
  • Possible yearly bonus based on Glassdoor reviews
  • Take-home pay after benefits: $1,764.78
  • More career growth opportunities, but higher risk of layoffs

With the higher tax bracket and the higher cost of health benefits, I’m not sure if the “higher salary” actually means more money in my pocket. Plus, I really like where I’m at right now. I’ve been promised chances for management positions, but they’ve been given to external candidates twice. Will this trend continue?

Any financial advice on whether I should take the leap?

Farewell,
Ambitious Job Seeker

Response from THE MONEY MINDER:

Hello There,

Congratulations on receiving a new job offer! It sounds like you have put a lot of thought into this decision, and I can understand why you are feeling torn. It’s essential to consider both the financial and non-financial aspects of this opportunity.

From a financial perspective, the increase in salary may seem enticing at first glance. However, when factoring in the higher costs of health insurance and potential deductions for including a spouse, it’s crucial to reassess if the higher salary will indeed result in more take-home pay. Considering that someone in your family may need to use the health benefits, the overall impact on your finances may vary.

Additionally, the new job offers more career opportunities but comes with potential future layoffs due to being a larger company. This aspect adds another layer of uncertainty to the decision-making process. While your current job may not provide as many advancement opportunities, you have been promised chances to apply for management positions, even though you have been passed over before.

I recommend taking a realistic and practical approach to weighing the pros and cons of both options. Consider your long-term career goals, job satisfaction, and financial stability. It may be helpful to have a conversation with your current employer about your concerns and future career prospects within the company. Ultimately, choose the option that aligns best with your overall objectives and values.

Best of luck with your decision-making process, and remember to prioritize your well-being and future prospects. Farewell from THE MONEY MINDER.

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