What happens to my pension if I move jobs?

23 Feb 2024

Moving jobs is a common part of modern career paths, but what does this mean for your pension? Let's break it down to help you understand how your pension is affected when you switch employers.

Your pension is still yours

The good news is your pension stays with you, even when you leave a job. Whether it's a defined contribution plan or a defined benefit plan, the funds you've accumulated remain yours. The type of plan determines how the pension will be managed moving forward.

Defined contribution pensions

For defined contribution pensions, your money stays invested. You'll keep receiving yearly statements showing the fund's performance. However, remember that investment values can fluctuate.

Defined benefit pensions

If you have a defined benefit plan, your pension will continue to be adjusted regularly to match inflation, ensuring its value is preserved over time.

Stopping contributions

When you change jobs, both your employer’s contributions and your automatic paycheck deductions to your old workplace pension will cease. You will need to start a new pension plan with your new employer or set up a private pension if you become self-employed.

Managing multiple pensions

Managing multiple pension pots from different jobs can become cumbersome. You can choose to combine them into one account, which could make managing your retirement savings more straightforward. Be sure to compare the features and benefits of each before making any transfers.

Keep in touch with your pension provider

It's essential to keep your pension provider updated with any personal changes, such as your address or name. Maintaining communication will ensure you continue to receive important updates and statements.

Setting up a new pension

Upon joining a new employer, you'll generally be auto-enrolled into their pension scheme. Additionally, you can set up a personal pension to further boost your retirement savings.

Self-employed options

If you decide to go self-employed, you’ll need to take charge of your pension arrangements. This gives you the flexibility to choose a plan that best fits your financial goals and retirement plans.

Using a pension app

Platforms like Penny make it easier to manage your pensions. With Penny’s mobile app, transferring and managing old workplace pensions when switching jobs becomes simpler and more efficient.

Switching jobs doesn't mean losing your pension. With correct management and understanding, you can ensure your retirement savings continue to grow, no matter where your career takes you.

SOME IMPORTANT THINGS YOU SHOULD KNOW
Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.
© Copyright 2024 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.
SOME IMPORTANT THINGS YOU SHOULD KNOW
Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.
© Copyright 2024 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.
SOME IMPORTANT THINGS YOU SHOULD KNOW
Pensions are long terms investments. It’s important that you know the value of your investment could go up as well as down. You could get back less than you put in. Past performance is not necessarily a guide to the future and pension investing is not intended to be a short-term option. Penny does not provide financial advice so please be sure that this investment is right for you.

Your current pension might have special benefits that will be lost if you transfer to Penny. These special benefits include: Guaranteed Annuity Rate (GAR), Guaranteed Bonus Rate (GBR), Guaranteed Minimum Pension (GMP) and Protected Tax Free Cash (PFTC) over 25%. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

Your current provider might charge you a transfer-fee to transfer your pension to Penny. If this is the case, we will not transfer your pension, as you may be better off not transferring in these cases.

You should consider the charges and benefits before transferring your old pensions to your new plan, and consider whether the risk and reward profile of the investments offered matches your needs. It may be that your current provider has lower fees than Penny - where this is the case, we recommend that you carefully consider whether to transfer your pension to Penny, as you may be better off not transferring in these cases.

If you are in any doubt about proceeding you should contact a financial adviser.
© Copyright 2024 Penny Technology Limited. Company registration: 11999643. FCA Reference Number: 931299.