Those who have changed jobs more than four times have an average retirement fund of £105,538, whereas the rest of the UK has saved up £89,762, according to Wealthify data.
Adults who switch jobs once save up an average of £93,234, and the city with the highest rate of job switches is London, which represents a fifth (19%) of them, while the North East of England makes up 18%.
Workers aged under 34 are the most frequent switchers, with almost a fifth of all 18-34-year-olds in the UK being frequent job hoppers as they progress early in their careers.
The reason for the increase in the pension pot for frequent job switchers compared to those who stay in the same job is due to a £10,000 difference in earnings between both groups.
Job hoppers earn an average of £39,276, while the average income of the 4,000 adults surveyed was £30,088.
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Around a fifth of IT professionals and financial services workers switch jobs regularly. So, due to salaries averaging £52,500 and £42,500 (according to Total Jobs), there is more opportunity to contribute higher amounts to a pension pot.
The other popular sectors for job switching are the hospitality (28% of employees), healthcare (22%) and food/drink (22%) sectors.
While earning more can boost your pension pot significantly, having multiple funds can also cause pensions to become lost. Those who switch jobs four or more times tend to have at least that amount in pension plans.
Around £31bn worth of pension contributions are with a pension provider who is unable to contact the owner of the pot.
After numerous delays, in October the Government announced work for all pension plans to be easily tracked with a dashboard system to commence in April 2025. As part of the revamped proposals, it set a deadline of 31 October 2026 for it to be ready to use.
‘Switching career can be great for boosting retirement funds’
Michelle Pearce-Burke, co-founder of Wealthify, said: “Being strategic about switching up your career at the right time can be great for boosting your earning power and, if you’re savvy, growing your retirement funds too. Don’t miss the opportunity to use some of a pay rise from a new job towards building your long-term future, by putting a little extra in your new pension if you can.
“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.”
Pearce-Burke added: “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.
“Investments can go down as well as up and, with consolidation, there are some key things to check beforehand, such [as] any exit charges that may apply or if you may lose any features, such as loyalty bonuses. Make sure to understand and compare any fees.”
Most popular jobs to hop from:
| Sector | Percentage of frequent job hoppers (4+ jobs in last 10 years) |
| Hospitality and leisure | 28% |
| Healthcare | 22% |
| Food and drink | 22% |
| Education | 21% |
| IT/computing | 20% |
| Financial services | 17% |
| Wholesale, retail and franchising | 15% |
| Business services | 13% |
| Construction | 13% |
| Professional services | 8% |
