8 Life Events That May Require You to Revisit Your 401(k) Strategy
Your 401(k) shouldn’t be a “set it and forget it” investment.
While automation makes saving for retirement easier, it doesn’t mean your account should be left untouched for years.
Life happens. Big changes in your career, finances, or family life may affect your retirement goals more than you realize.
That’s why we believe it’s important to occasionally revisit your 401(k) strategy – especially after major life events.
In this post, we’re breaking down 10 key moments when we recommend it may be wise to check in on your 401(k).
Whether it’s time to increase contributions, rebalance, or simply review your current allocation, these events could signal that a change is needed.
Switching employers is one of the most common – and often overlooked – reasons to revisit your 401(k) strategy.
#1 You Change Jobs
When you leave a job, you leave behind that company’s 401(k) plan.
Many people forget or ignore their old accounts, which may lead to higher fees, poor performance, or limited investment choices.
In addition, your new employer’s 401(k) may have a completely different fee structure, match policy, or investment lineup.
Reviewing your new options and making informed decisions about rollovers or contribution rates may make a big difference in your long-term growth.
This can also be a great time to consolidate old accounts or reassess your asset allocation to ensure it still aligns with your goals and risk tolerance.
[Related Read: 5 Things to Consider with Your 401(k) When You Change Jobs]
#2 You Get a Bonus or Raise
Getting a raise or a bonus feels great, but it may also be a cue to revisit your 401(k) strategy.
Why? Because as your income increases, so should your retirement contributions – especially if you’re not yet maxing out.
Rather than letting lifestyle creep absorb all that extra cash, consider bumping up your contribution rate by 1-2%.
Better yet, invest the entire amount of the raise or bonus.
It may not be as fun as buying a new computer or going on vacation, but it’s a relatively painless way to put more money toward your future.
If your employer offers a match, increasing your contributions might also help you take full advantage of “free money” you weren’t previously capturing.
This can also be a good time to review your overall retirement plan and determine whether your current investment mix still reflects your goals and time horizon.
#3 You Get Married or Divorced
Marriage and divorce are major financial turning points – and both should prompt you to revisit your 401(k) strategy.
When you get married, your household income, tax status, and long-term financial goals often shift.
You may need to coordinate retirement planning with your spouse, adjust contributions, or reevaluate your combined risk tolerance.
On the other hand, divorce can drastically change your financial situation.
Depending on the terms, you or your ex may be entitled to a portion of each other’s 401(k) via a QDRO (Qualified Domestic Relations Order).
This means your account balance – and your retirement timeline – may take a hit.
Either way, a major relationship change is a smart time to pause, review your retirement strategy, and ensure your investments and contributions are still on track for your personal financial future.
Also, in the event of a divorce, make sure to review your beneficiaries and make changes as needed.
[Related Read: What Happens to Your 401(k) after Divorce?]
#4 You Have a Baby
Expanding your family typically comes with added expenses – and a shift in financial priorities.
While it may be tempting to scale back retirement savings to cover childcare or baby-related costs, this may be a smart time to revisit your 401(k) strategy, not pause it.
Having children often extends your financial responsibilities into the decades ahead – from daycare and school tuition to college savings.
But don’t lose sight of your retirement in the process.
This life change may also prompt you to update your 401(k) beneficiaries, especially if you haven’t reviewed them in a while.
Many people forget that 401(k) plans aren’t included in a will and need to be updated separately.
Revisiting your 401(k) strategy after welcoming a child may help ensure you’re balancing today’s financial responsibilities with tomorrow’s retirement needs without sacrificing one for the other.
#5 You Buy a Home
Buying a home is one of the biggest financial decisions you’ll make, and it may come with a temptation to reduce 401(k) contributions or tap into retirement funds.
But before making any changes, take a moment to revisit your 401(k) strategy.
If you’ve dipped into savings or paused contributions while focusing on your down payment, it’s wise to create a plan for getting back on track.
Homeownership often changes your monthly cash flow, and that may affect how much you are able to save for retirement.
We also think this is an ideal time to check in on your overall financial goals and confirm your asset allocation still supports your long-term vision.
Don’t let your 401(k) fall behind while you focus on your mortgage – both are crucial pieces of your financial puzzle.
#6 You Turn 50
Hitting the big 5-0 comes with a silver lining: you’re now eligible for catch-up contributions to your 401(k).
For 2025, workers 50 and older can contribute an additional $7,500 on top of the regular $23,500 limit.
That can be a significant opportunity to boost your retirement savings in the final stretch.
As you approach retirement age, we feel it’s also important to revisit your 401(k) strategy with a more critical lens.
Are you saving enough to retire when you want?
Is your investment mix still appropriate given your time horizon and risk tolerance?
Turning 50 is a powerful reminder that retirement isn’t theoretical anymore – it’s getting closer.
Take time to ensure your strategy reflects that.
#7 You Lose Your Job or Take a Pay Cut
Losing a job or facing a pay reduction is stressful and often forces difficult financial choices.
In times like these, it’s tempting to pause 401(k) contributions or even withdraw funds to stay afloat.
While that may be necessary in some situations, we believe it’s critical to understand the long-term impact and revisit your 401(k) strategy before making any moves.
If you can, consider reducing contributions rather than stopping entirely.
If you do need to pause saving temporarily, set a timeline and plan to restart when things stabilize.
Also, assess whether your investment allocation still makes sense during this uncertain period.
You may want to rebalance or adjust risk exposure to better align with your current financial situation.
#8 You’re Nearing Retirement
If you’re within 5-10 years of retirement, we think it’s more important than ever to revisit your 401(k) strategy.
At this stage, the focus often shifts from growth to preservation and income.
You may want to reduce exposure to high-risk investments and build a more conservative portfolio that protects your hard-earned savings.
This can also be a good time to start estimating how much you’ll need in retirement – and whether your current trajectory gets you there.
You might consider increasing contributions, reviewing fees, or exploring other retirement income tools.
Regular rebalancing becomes especially important now, as market fluctuations may have an outsized impact on your account if retirement is just around the corner.
Don’t Let Life Changes Derail Your 401(k)
Life doesn’t stand still, and neither should your 401(k).
Whether it’s a career shift, a growing family, or a major financial decision, each life event is an opportunity to revisit your 401(k) strategy and make sure you’re staying on track.
Even small changes to your contributions, allocation, or savings plan may make a big difference over time.
If you’re not sure what to adjust – or where to start – we’re here to help.
401(k) Maneuver offers independent, professional account management with the goal of helping people just like you grow and protect their 401(k) accounts. We aim to increase performance over time, manage downside risk to minimize losses, and reduce fees that may be hurting your returns.
