Changing jobs could leave your child with a larger pension than yours

Parents don’t have to worry about their children changing jobs frequently because research shows that their pension funds will be much larger in the long term.

Those who have changed jobs four or more times in the last decade tend to be younger, early in their career, and change frequently to maximize their salary. A fifth of people aged 18 to 34 have moved more than four times, and more than one in ten people aged 35 to 45 have done the same.

Research by investment platform Wealthify shows that serial job seekers have saved £12,304 more into their pensions than those who have changed jobs just once.

Frequent job seekers have an average pension pot of £105,538 compared to £93,234 for those who have stayed put.

Therefore, it means they are more likely to have the amount needed for a basic standard of living in retirement, which is currently £107,800, equivalent to an annual income of £19,300, according to the Resolution Foundation.

But figures from the Pension and Lifetime Savings Association show that a pensioner needs £31,300 a year for a “moderate” lifestyle and £43,100 for a “comfortable” lifestyle and has saved a pension fund worth between £300,000 and £790,000.

Those who change jobs frequently also earn more than their peers with an average salary of £39,276 compared to £35,403 for those who have moved once. The average salary in the UK is £37,430.

Hospitality has the highest proportion of job seekers (28 percent), followed by food and beverage (22 percent) and healthcare (22 percent). In contrast, only 3 percent of employees in the public services and real estate sectors have changed jobs and 4 percent in agriculture.

Employees in London are the biggest eaters, with 19 per cent changing jobs more than four times, followed by the North East (18 per cent) and the West Midlands (14 per cent).

The East Midlands (9 per cent), the South West (9 per cent) and Northern Ireland (6 per cent) have the lowest proportion.

Michelle Pearce-Burke, of Wealthify, said: “Being strategic about changing careers at the right time can be great for increasing your earning power and growing your retirement funds.”

“Whether your pay rise is due to a job change or not, don’t miss the opportunity to make it count for your future by contributing a little more to your pension if you can.”