UK ‘job hoppers’ have £15,000 more than average in pension savings

UK ‘job hoppers’ have over £15,000 more in pension savings than the average person, research from Wealthify showed.

The study, conducted among 4,000 UK adults, defined “job hoppers” as people who had switched jobs four or more times in the past decade, covering an estimated 4.3 million people (13 per cent) of the population.

These ‘frequent job hoppers’ had an average (mean) pension savings of £105,538, compared to £89,762 for the average UK adult and £93,234 for those who have only switched jobs once.

The average income of job hoppers was £39,276 a year, nearly £10,000 more than the average income of those surveyed as a whole (£30,088) and more than that of those who have only switched jobs once in the last decade (£35,403).

However, in addition to having more in total pension savings, job hoppers were also more likely to have multiple pension pots, as they accrue workplace pensions across multiple jobs.

Over a third (34 per cent) of job hoppers had four or more pots, compared to only 14 per cent of the general UK population.

However, the number of job hoppers with a private pension (18 per cent) was roughly equivalent to the population average (19 per cent), suggesting that most job hoppers’ retirement savings were in workplace pensions.

Wealthify’s co-founder, Michelle Pearce-Burke, said being strategic about switching up your career at the right time can be great for “boosting earning power” and “growing retirement funds”.

“Don’t forget, multiple pensions from different jobs can build up quickly, and it’s easy to lose track of pots along the way. Consolidating all your old workplace pensions into one means you can be confident about where your money is and keep track of your retirement goals,” she said.

"As well as making your finances easier to manage, consolidating can put you in a better position for retirement and make your savings go further, by potentially reducing the fees you pay on your pensions and allowing you to access a wider range of investment options.

According to Wealthify, London had the highest number of frequent job hoppers (19 per cent), followed by the North East (18 per cent) and the West Midlands (14 per cent).

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