What Happens to Your Workplace Pension When You Change Jobs?

What happens to your workplace pension when you change jobs?

Are you wondering what happens to your pension when you change jobs? Many people lose track of their pensions, leading to significant financial losses. Transferring your pension to your current provider offers several advantages, including easier planning, increased accessibility and tailored investment options.

So, what happens to your pension when you change jobs and what should you do about it?

Benefits of transferring your pension

When you leave a job, you typically have a few options for your pension: leave it where it is, cash it out (if applicable), or transfer it to your new provider. While leaving your pension as is might seem convenient, transferring it to your current provider can offer several benefits:

Simplified Planning

Consolidating all your pensions into one place makes it easier to track your savings, ensuring you have a clear view of your financial situation as you plan for retirement. This reduces the chances of losing track of old pensions, a common issue for many.

Tailored investments

When you transfer your pension, you can often reallocate your funds to investments that better suit your age, risk tolerance and retirement goals. As you near retirement, adjusting your investments can help reduce risk and combat inflation, ensuring your savings maintain their value.

Enhanced accessibility

Having your pension in one accessible location simplifies management. You can easily access your pension funds when you need them, making the process more convenient. Plus, keeping everything in one place reduces administrative headaches.

Key considerations before transferring

Before you rush to transfer your pension, there are a few key factors you should keep in mind:

Fees and Charges

Pension schemes can have varying fee structures. It’s essential to compare the fees from both your current scheme and the one you’re considering transferring to. Some older pensions may have higher fees which could eat into your savings over time.

Investment performance

Evaluate the historical performance of both schemes. While past performance is not a guarantee of future returns, understanding how each pension has performed can give you valuable insight into which might be a better long-term option.

Pension benefits

Some workplace pensions come with special benefits, like guaranteed annuities or enhanced employer contributions. Transferring these pensions could mean losing those perks, so it’s important to weigh the pros and cons before making a decision.

Making Informed Decisions

Managing your pension shouldn’t feel like navigating a maze. Using free, impartial sources like MoneyHelper can provide the guidance you need to make informed decisions. Understanding your options, from leaving your pension where it is to transferring it to a new scheme ensures you’re not losing out on valuable retirement funds.

We make it easier to manage your pensions with our Track, Trace, and Transfer feature available in the member portal.

This tool helps you locate old pensions, ensuring you don’t lose out on any of your hard-earned money. Best of all, it doesn’t cost you anything to reconnect with your lost funds.

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Find your old pensions with ease

While many pensions are straightforward to transfer, some have special features that are best left untouched. If we find any such pensions, we’ll notify you before making any transfers so you can make an informed decision.

Ready to reunite with your pension?

Log in to the member portal and use our Track, Trace, and Transfer feature today to locate your old pensions and start planning for a financially secure retirement.

What Happens to Your Workplace Pension When You Change Jobs?