What Happens to Your Pension When You Change Jobs?

A common worry when leaving a job is what happens to the workplace pension built up there. The short answer: it stays yours. Nobody can take it away, and it keeps whatever value it has built up (though it stays invested, so the value can still move up or down with the markets).

Your options when you leave

Once you leave an employer, you generally have a few choices for the pension pot you built up there:

• Leave it where it is. Most schemes let you leave your pot invested with the old provider even after you've left. It will keep growing or shrinking with the markets, but you (and your old employer) stop paying into it.
• Transfer it to your new employer's scheme. Some schemes accept transfers in, which can make it easier to keep track of one pot instead of several.
• Transfer it to a personal pension or SIPP. This consolidates it under your own control rather than an employer scheme.

There's no single right answer — it depends on the fees and fund choices of your old scheme compared with your new one or a personal pension, and whether you'd rather have everything in one place.

What starts automatically at your new job

If you're eligible for auto-enrolment, your new employer will automatically enrol you into a workplace pension scheme (their own, not your old one) once you meet the criteria — this is a separate, fresh pot, distinct from whatever you built up previously, unless you actively transfer your old pot in.

Why people end up with several small pots

Because pension pots stay with the scheme they were built in unless you transfer them, it's very common for people who've had several jobs to end up with several separate pension pots by the time they retire. This isn't necessarily a problem, but it can make it harder to get a clear picture of your total retirement savings, and small old pots are sometimes forgotten about entirely — see our guide on finding a lost pension.

Things to check before transferring

Before consolidating pots, it's worth checking a few things: whether your old scheme charges an exit fee, whether it comes with any valuable guarantees (especially relevant for older or defined benefit schemes — be very cautious here), and whether the scheme you're transferring into actually has lower fees or better fund choices. Consolidating for the sake of tidiness alone isn't always worth it if it means losing something valuable or paying more in fees.

Keeping track over time

Whatever you decide, it's worth keeping a note of every pension scheme you've ever been part of — provider name, rough dates, and any paperwork or online login details. The free government Pension Tracing Service can help if you've lost track of an old scheme's contact details, even if you can't remember the exact pot's current value.

This is general information, not personalised financial advice. Rules and allowances change, and your right decision depends on your own circumstances — for anything that affects your money long-term, it is worth checking the current figures on GOV.UK or speaking to a regulated financial adviser (MoneyHelper offers free, impartial guidance).