People who have changed jobs four or more times in the past decade have saved over £12,000 more in their pension pots than those who have switched only once.
Research from Wealthify found that ‘frequent job hoppers’ have accumulated an average of £105,538 in pension savings compared to £93,234 for adults who have only moved jobs the one time.
Almost a fifth (18%) of 18-34-year-olds and 11% of 34-54-year-olds have switched jobs more than four times in the last 10 years.
The sectors with the highest number of job hoppers are hospitality (28%), healthcare (22%), food & drink (22%), education (21%), computing (20%) and financial services (17%).
London has the highest proportion (19%), followed by the North East (18%) and the West Midlands (14%).
The average income of job hoppers is £39,276 a year, nearly £4,000 more than those who have only switched jobs once in the last decade (£35,403).
However, unsurprisingly, job hoppers are more likely to have multiple pension pots as they accrue workplace pensions.
Wealthify said this can leave them with many different providers and the possibility of losing track if they have not thought about consolidating them.
There is an estimated £33.1bn in lost pensions in the UK, which “may put job hoppers at risk of missing out on reaping the full benefits of their savings”, Wealthify added.
The number of job hoppers who have a private pension (18%) is roughly equivalent to the UK population average (19%).
Wealthify co-founder Michelle Pearce-Burke 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.
“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 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.”
To obtain these results, Wealthify commissioned Opinium to poll 4,000 UK adults in September.
