Job hoppers who frequently change roles have £15,776 more in their pensions pots than the average worker, according to new data.
Research by Wealthify found that people who have moved jobs four or more times in the last 10 years – accounting for 13% of the UK population – have £105,538 in retirement savings, while most others have £89,762.
Of the 4,000 workers surveyed by the investments firm, those who have only switched jobs once had £93,234 in pensions savings.
The study showed London had the highest number of frequent job hoppers at 19%, closely followed by the North East with 18% and the West Midlands, which had 14%. The regions with the lowest proportion were the East Midlands (9%), South West (9%) and Northern Ireland (6%).
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Looking at the generations, nearly one in five (18%) of 18 to 34-year-olds surveyed had switched jobs more than four times in the last 10 years, while more than 11% of 34-54-year-olds said the same.
The sector with the greatest number of job hoppers was hospitality (28%). This was followed by healthcare (22%), food and drink (22%) and education (21%). Frequent job changes were also found in computing (20%) and financial services (17%).
Job hoppers were also found to have bigger average incomes than most, at £39,276 a year compared to £30,088 earned by the average worker and the £35,403 salary of those who have only switched jobs once in the past 10 years.
The research showed job hoppers were also more likely to have several pensions pots, with one in three (34%) having four or more pots, compared to 14% of the UK workforce.
Among those who have moved roles four or more times, 23% have only one pension pot, compared to 41% of the average population.
However, the number of job hoppers with a private pension is roughly the same as the rest of the UK’s workforce, at 18% and 19% respectively.
According to Michelle Pearce-Burke, co-founder of Wealthify, being strategic about career moves at the right time can be great for boosting earning power and potentially growing retirement funds. However, she warned employees not to lose track of their pots.
“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,” Pearce-Burke added.
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