Dean Butler, Managing Director for Retail Direct at Standard Life comments: “For many, a job change marks the start of an exciting new chapter, bringing new opportunities, fresh challenges, and often an increased pay packet. Amid all this change, some considerations like your old pension can get forgotten about, particularly as new employers will likely be automatically enrolling you into a new pension plan.
“While this may seem like a stress-free process, switching jobs several times throughout your working life could leave you with quite a few pension pots to keep track of. With over 3.3 million pension pots, each worth an average of £9,470, estimated to be ‘lost’ in the UK and almost a quarter of UK workers (23%) planning to leave their jobs in 2025, it is really important to stay on top of your retirement savings when moving jobs and ensure you have a clear understanding of the next steps when it comes to your pension.”
Dean Butler outlines the top things you should consider about your pension when leaving a company:
1. Keep track of your pension savings
“When changing jobs, it’s easy to focus on the future and forget about the pension pots you’ve left behind. But staying on top of your old pensions is essential to avoid losing track of valuable savings. With multiple job moves over a career, it’s not uncommon to accumulate several pension pots, and managing them can become increasingly complex if they’re scattered across different providers. When you leave a job, your pension doesn’t disappear – it stays invested. However, your own and your employer’s contributions stop, and although your savings may still grow through investment performance, ongoing charges can gradually eat into your pot. That’s why it’s important not to neglect these pensions. Make sure your pension provider has up-to-date contact details, including a personal email address, especially if you’re losing access to your work account. If you’ve had several employers, take the time to check that you know where each pension pot is – and if not, a pension tracing service can help you locate lost plans using your old employers’ details.”
2. Consider consolidating your pensions
“Once you’ve tracked down your past pension pots, you may want to consider consolidating them into a single plan. For many, this can be a practical way to reduce admin, simplify management, and help keep better track of retirement progress with everything in one place. In some cases, it could even lower fees – but that’s not guaranteed, so always check the charges associated with each plan. Keep in mind that consolidation isn’t right for everyone. Some older pensions may include valuable benefits that could be lost if you transfer them, so it’s essential to do your research and weigh the pros and cons before making a decision.”
3. Review your investment choices
“Pensions are about preparing for your future, so if you’re moving to a new job, take the opportunity to check the investment options in your new plan. Make sure they align with your retirement goals, time horizon and risk appetite. For example, if you’re decades away from retirement, you might want to explore higher-risk funds that offer greater long-term growth potential.”
4. Set saving goals – and maximise your employer contributions
“A new job is a great opportunity to reset your saving habits. Set clear goals for how much you want to save overall, and how much of that you want to allocate to your pension. Reviewing your monthly expenses can help you identify areas to cut back and boost contributions without a major impact on your lifestyle. Also, check your new employer’s pension scheme carefully – particularly whether they offer contribution matching. Contributing enough to take full advantage of any matching scheme is essentially free money and can significantly boost your retirement savings over time. New joiner bonuses can also be a great way to top up your pension early on.”
5. Don’t overlook pension saving if you’re not moving into a new job
“If you’re taking time out or don’t have access to a workplace pension immediately, it’s still important to keep your pension savings going if you can. You might be able to keep contributing to your old plan, though this varies by provider, so it’s worth checking. If that’s not an option, or if your old plan doesn’t meet your current needs, you may want to look into opening a personal pension.
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